How long must we wait for VAT advice?

How long does it take for Customs and Excise to answer a straightforward question? Three years and counting, it seems. Believe it or not, that's how long a couple of the big business travel agencies have been trying to get an answer from the tax man on whether value added tax is payable on service charges.

Of course, three years ago, this question was not applicable to most agents. But now that British Airways' new payment scheme has come into force, it's becoming one of the most talked-about issues.

And finding an answer is like looking for a needle in a haystack.

Many agents are getting conflicting advice. First Customs and Excise said it didn't know whether agents could charge for the service. Then some local tax offices told agents they could charge, other agents in different parts of the country were told they couldn't.

Trade bodies like ABTA and the Guild of Business Travel Agents have also been trying to establish what the correct position is.

Meanwhile, agents who have turned to BA for advice have found the story changing at various times.

For the record, BA's line now is that it believes VATis not chargeable but, to be on the safe side, it is now referring agents to Customs and Excise to get the definitive answer.

This could prove expensive all round. Let's hope it doesn't take another three years to clear up this uncertainty.

How long must we wait for VAT advice?

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