VAT (Hansard, 8 June 1999)

§ Mr. Maude
To ask the Chancellor of the Exchequer if he will estimate the revenue implications for the Exchequer of the judgment of the European Court in the First National Bank of Chicago case (Case C-172/96); and if he will make a statement. [85684]

§ Ms Hewitt
HM Customs and Excise are monitoring claims from businesses applying the ruling to previous forex transactions. It is too early to estimate with any certainty the final amount to be paid out.

§ Mr. Maude
To ask the Chancellor of the Exchequer what is his policy with regard to the VAT treatment of(a) unilateral and (b) bilateral supplies in the field of financial transactions and instruments following the judgment of the European Court in the First National Bank of Chicago case (Case C-172/96). [85683]

§ Dawn Primarolo
Supplies of financial services and instruments are exempt from VAT. VAT on related costs is recoverable to the extent that it relates to supplies to counter-parties outside the territory of the European Community.

§ Mr. Maude
To ask the Chancellor of the Exchequer what proposals for legislation with regards to VAT on financial services have been made by the European Union VAT Committee; and if he will make a statement. [85681]

§ Dawn Primarolo
No such proposal has been made.

§ Mr. Maude
To ask the Chancellor of the Exchequer what discussions (i) he, (ii) Treasury Ministers and (iii) Treasury officials have had with(a) the European Commission, (b) the European Union VAT Committee and (c) the Council of Ministers with regards to VAT on financial services. [85682]

§ Dawn Primarolo
The European Commission has commissioned a series of studies into the feasibility of applying VAT to financial services. Customs and Excise are responsible for VAT policy, and officials have spoken to Commission officials about the progress of the studies on a number of occasions. In addition, Customs officials have attended seminars and a conference organised by the Commission. The consultants' report has yet to be considered by the Commission. No proposals have been made.