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Telefonica Asks German Court To Decide On VAT Rebate

by Ulrika Lomas, for LawAndTax-News.com, Brussels

07 February 2005

According to a Dow Jones Newswires report, Spanish telecoms giant, Telefonica has asked a German court to decide whether it should receive a VAT rebate from the German government.

Telefonica reportedly paid EUR8.4 billion for one of six 3G mobile telephony licenses on offer in 2000. The license has never been used by its German unit, Quam, and together with several other license holders, Telefonica has asked for a refund of the VAT included in the purchase price.

However, the German government is adamant that no rebate will be paid to the telecoms operators in question.

Observers have suggested that the Cologne tax court is likely to refer the matter to the European Court of Justice (ECJ), which is currently examining similar disputes in other EU member states.

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