VAT refunds on some road tolls
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IN Hauliers who have forked out thousands of pounds in tolls over the past three years could be entitled to claim the VAT back, according to accountancy firm Grant Thornton.
Last September the European Court of Justice declared that certain road tolls should have been subject to VAT since 1994. This includes privately operated services such as the Dartford Crossing, Severn Bridge and Skye Bridge, but not those operated by a statutory body such as a local council.
Frank Hartley, indirect tax partner at Grant Thornton, says hauliers which can show heavy usage of these services should consider recouping VAT from the last three years. "ln retro spect, a portion of these tolls was VAT," he points out."' doubt that Customs & Excise will reach straight for their cheque books, but there is certainly a potential for claims here. We just have to be cautious only to proceed where it's worthwhile."
A Customs & Excise spokesman says: "Hauliers are entitled to try, but it seems nonsensical when they didn't pay VAT in the first place. One or two people have applied and we have said no. If necessary we will fight this through the courts."
Following the September ruling, hauliers will be able to reclaim VAT on future tolls. Customs & Excise says it is consulting with industry bodies to find a simple way to administer the scheme.