§ Mr. HowardTo ask the Chancellor of the Exchequer (1) what assessment he has made of the implications for
1192Whis consultation document on VAT on Face Value Vouchers of the 11 July judgment of the European Court of Justice in Case C-62/00, Marks and Spencer v Commissioners of HM Customs and Excise; [71696]
(2) what estimate he has made of the total cost to the Exchequer of the 11 July judgment of the European Court of Justice in Case C-62/00, Marks and Spencer v Commissioners of HM Customs and Excise, relating to HM Customs' three year rule on retrospective VAT claims across the economy; [71695]
(3) with reference to the 11 July judgment of the European Court of Justice in Case C-62/00, Marks and Spencer v Commissioners of HM Customs and Excise, if he will estimate the total VAT erroneously charged on (a) chocolate coated teacakes and (b) face value vouchers since 1973; and if he will make a statement. [71698]
§ John HealeyCustoms officials are in the process of consulting with legal advisers on the implications of the judgment of the European Court of Justice in Case C-62/00, Marks and Spencer plc v the Commissioners of Customs and Excise.
As the ECJ has endorsed the UK's three year time limit for repayments of overpaid VAT, Customs' view is that the judgment will only affect certain claims which were made, or could have been made, around the time when the cap was introduced in 1996.
Customs will be publishing guidance on the wider implications of the judgment for VAT registered businesses soon.
We are currently unable to provide an accurate estimate of the total revenue effect of this judgment, nor of its effect on claims relating to particular types of product. However, given the limited scope of this judgment, it is not expected to have a significant revenue effect.
This judgment is not thought to have implications for the current consultation document on 'VAT on Face Value Vouchers'.