The European Court of Justice has ruled that a Jersey-based slot machine firm is liable to pay value added tax to the United Kingdom Customs & Excise despite being theoretically located outside of the European Union.
Following the opinion of advocate general Poiares Maduro issued in January, the ECJ decided yesterday that RAL Ltd., which operates amusement arcades in the UK, was liable for British value added tax because the location of its machines meant it had a "fixed establishment" in the country.
If income from the machines is allowed to escape VAT, then the ECJ believes that competition within the EU would be distorted, and European firms will be encouraged to set up outside the community to avoid tax.
Under EU VAT rules, entertainment businesses should be taxed where they do business, not where their headquarters are registered and the court ruled that "slot gaming machines installed in amusement arcades established in the territory of a Member State must be regarded as constituting entertainment or similar activities."
UK Court documents have revealed that RAL had applied for VAT refunds totaling some £6 million.
.
Network Tweets
Network BlogsContent
provided by
|
Archive | Resources | Partners | Site Map | Links | Newsletter Archive | Contact | RSS Feeds | About | Syndication | Advertising & Marketing | Recruitment | Terms & Conditions | Privacy & Cookies
Copyright © 2012 - All Rights Reserved - Tax-News.com
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment