ECJ rules VAT on card payment handling
- European News
- 26 May 2016 | Richard Asquith
The European Court of Justice (ECJ) ruled this week on the VAT liability of credit payment handling feed for a cinema ticket service. The ECJ backed the UK’s HMRC and First-tier Tribunal and ruled that VAT was liable on the handling fees.
VAT on credit card payment processing
Bookit Ltd, a UK company, provided cinema ticket credit purchase handling services for Odeon Cinemas. The UK’s HMRC determined that such services which liable to VAT, and not exempt as a financial service under Schedule 9 of the UK’s Finance Act, which mirrors Article 135(1)b to g on exemptions for processing accounts, payments, cheques and others.
Bookit charged Odeon for processing credit card payments taken over the phone or by internet – approximately €0.82 to €0.95 per transaction.
The ECJ found that Bookit paid no specific or essential part in achieving the payments. It merely acted as an intermediary between Odeon, customers and the merchant service (a bank).
Poland’s Ministry of Finance has announced that it will recategorise many supplies to within the current reduced VAT rate category. However, this will mean Poland will not...
Hungary has received permission to introduce an VAT registration threshold for businesses of HUF 12 million from 1 January 2019. This is approximately €48,000, based...
HMRC announced today that it is opening the test pilot for its Making Tax Digital for VAT programme to the public. However, HMRC also announced...