Call for VAT-free purchases
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• International haulier Brian Yeardley is calling for a change in the way VAT is reclaimed on goods bought on the Continent.
Hauliers, like manufacturers, should be able to buy goods arid services VAT-free which are vital to keep their business running, he claims.
The tortuous process UK hauliers have to go through to reclaim VAT on fuel bought abroad is a major problem for cash-strapped firms. At any one time the Featherstone, West Yorks-based company is owed about £245,000. It says it takes Italy three years to repay VAT on fuel and services bought there, while it takes the UK Government up to three months. It then costs the company up to 15% in agents' fees to reclaim the VAT.
"I'd be a hell of a lot better off if I got the VAT back within three months or could invoice VAT-free," says Yeardley. The problem is compounded by haying to pay 2-3% over the base rate on his overdraft, he says.
Yeardley, who operates most of his 95 trucks on weekly groupage trips to the Continent, spends ,£1.9m a year in other EL: countries largely on fuel, tyres and tolls.
He has asked Road Haulage Association director-general Steven Norris to investigate the matter and is waiting for a reply.