Vat Refunds
VALASSIS HELPS COUPON ISSUERS TO CLAIM £160 MILLION IN VAT REFUNDS FOR END OF MARCH
Landmark House of Lords decision means UK retailers and brands have until 31st March to recover VAT costs
Valassis, the UK’s leading coupon and voucher clearing business, is offering to help coupon issuers recover in excess of £160 million in VAT refunds following a landmark decision by the House of Lords. In partnership with leading financial and business advisers Grant Thornton, Valassis is working with companies to register a claim for a VAT refund before the deadline of 31st March 2009, and is offering advice and financial services to every coupon issuer in the UK. With claims exceeding £160 million in total, Valassis will make a huge difference to this year’s annual reports for hundreds of companies whose budgets are being slashed to an alarming extent as a result of the recession.
Companies that issue coupons are entitled to reclaim VAT on the value of the coupons redeemed, and Regulation 29 of the Value Added Tax Regulations 1995 stipulates a three year time limit on claims for a VAT refund. However, on 23rd January 2008, the House of Lords unanimously ruled that this regulation is incompatible with European Union Law, and extended the limitation period to 36 years. This ruling meant that claims can now be made with respect to VAT paid since 1973.
Charles D’Oyly, managing director of Valassis, says “As the company responsible for handling 85% of the UK’s coupons and vouchers, Valassis has redemption data going back many years and this, together with our expertise, is fundamental to making an accurate and timely claim for a VAT refund. 75% of the companies we have spoken to had no idea of the change in the law or how it affected them, which is worrying given the short time left and the significant sums involved during these straightened times. We are working hard to help every coupon issuer in the UK understand and act upon this dramatic change in the law.”
D’Oyly continues, “Valassis is offering a total solution, from the initial consultation right through to handling and submitting the claim, to ensure that the looming deadline is met and to make it as easy as possible for retailers and brands to make a successful claim and maximise the repayment to which they are now legally entitled.”
Nigel Frost, Senior VAT Manager at Grant Thornton, says “We are working with Valassis to raise awareness of the court ruling and to help retailers and brands make claims before the 31st March deadline. Many organisations are unaware of the decision or that they are eligible for a refund. We have helped businesses to recover significant amounts of VAT and interest, even where business records are not available for the entire period of the claim."
For further information about making a claim, please contact Paul Duckworth at Valassis on 01536 445222 or 07971 149035, or on email at pduckworth@valassis.co.uk