‘GST exemptions could lead to costly lawsuits’

GST exemptions could open the Island up to multi-million pound lawsuits and the threat of the States being bound by EU court decisions, States Members have been warned.

In the run-up to the debate on GST exemptions for food and domestic fuel due to start during tomorrow’s States meeting, Islander Craig Leach said that a simple flat-rate sales tax with as few exemptions as possible was the best way forward.

Recent reports in the UK have stated that fast food retailers are poised to launch tax claims for billions of pounds worth of refunds over a recent EU court verdict.

The European Court of Justice ruled that when fast food outlets do not provide much service, any food being consumed inside the premises should be treated as VAT free.

Mr Leach, who worked in international banking and investment, says that the EU case is a warning that Jersey could open a can of worms by allowing GST exemptions. (from JEP)