Polish VAT legislation disallowed claims to input tax on certain services imported from territories classified as ‘tax havens’ (including Gibraltar the Channel Islands and the Isle of Man). In Oasis East sp zoo v Minister Finansów (ECJ Case C-395/09) a Polish company took court proceedings contending that this legislation contravened Article 17(6) of the EC Sixth Directive. The case was referred to the ECJ which found in favour of the company holding that Article 17(6) precluded national legislation ‘which excludes in general the right to deduct input value added tax paid at the time of the purchase of imported services the price of which is directly or indirectly paid to a person established in a State or territory classified as a ‘tax haven’ by that national legislation’.
Why it matters: This decision is good news for businesses established in the Channel Islands or the...
