EU tax ruling to hit Irish firms

ORGANISATIONS that set up companies or take other measures to recoup VAT are acting illegally, the European Court of Justice has found.

The ruling - which now becomes part of EU tax law - has serious implications for all companies, including Irish ones, employers’ organisation IBEC confirmed.

In Britain, health insurers BUPA, the University of Huddersfield and Halifax plc all applied for VAT refunds on transactions they would not normally have been able to recoup tax on.