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Direct Selling (Vat)

Volume 78: debated on Wednesday 1 May 1985

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asked the Chancellor of the Exchequer what action he proposes to take in the light of the judgment of the European Court that United Kingdom powers to require value added tax on the open market value of goods in the direct selling field is of no legal effect.

A formal submission has now been made to the European Commission seeking to restore the vires for the VAT valuation provisions of paragraph 3 of schedule 4 to the Value Added Tax Act 1983, by derogation under article 27 of the sixth VAT directive. Customs and Excise are in communication with those traders who may consider that they have overpaid tax under the provisions affected by the European Court judgment.