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Freeserve Loses AOL UK V.A.T Case
By: MarkJ - 04 November, 2003 (8:53 AM)

UK ISP Freeserve, which has long (two years) rambled on about AOL UK's ability to avoid paying 17.5% V.A.T (Value Added Tax) because it's based in the USA, has lost its case:

The High Court dismissed an attempt by Freeserve to challenge HM Customs and Excise's decision not to charge VAT on AOL's Internet service in the UK. The High Court also turned down Freeserve's bid to appeal the decision.

Freeserve pressed ahead with its VAT campaign, even though new European legislation introduced during the summer meant that all ISPs - even AOL - now pay VAT.

In a statement Freeserve said: "We are disappointed with the verdict but we are pleased that since 1 July 2003 AOL is in line with all other ISPs and has been paying VAT so that the level playing field we fought long and hard for has been achieved."

It looks as if the matter can finally be put to bed. More @ The Register.

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