Retailers – credit card handling fees not subject to VAT?
Businesses that charge separate card handling fees to customers may be able to reclaim tax paid, following the High Court decision in Bookit Limited. The case, taken by Deloitte, involved card handling fees charged by a booking centre to cinema-goers who purchased their tickets over the telephone or over the internet. Customs argued that VAT was due on the fee but the High Court disagreed and decided that the charge was not subject to VAT.
Teacakes case goes back to the ECJ
The House of Lords has asked the ECJ to consider whether Customs can use the "unjust enrichment" argument to deny repayment of VAT that they accept has been overpaid by Marks & Spencer. M&S contends that the ‘unjust enrichment’ defence used by Customs to refuse repayment of VAT that M&S overpaid on teacakes over several years is discriminatory as it does not apply to taxpayers who are due refunds of VAT at the end of their VAT period but does apply to
