Customs unconvinced over euro VAT plea

Attempts by software vendors to persuade HM Customs & Excise to accept VAT in euros have fallen at the first hurdle, due to a failure to get support from bigger companies. Dennis Keeling, chairman of the Business Accounting Software Developers Association (Basda), which headed the campaign, told his staff that nothing was resolved at Friday's inaugural meeting.

Software vendors represented by Basda are keen for Customs to accept VAT invoices in euros instead of sterling, because dual systems are difficult to develop. Dual systems are, in their opinion, unnecessary for a UK company which decides to switch its accounting over to the euro.

Martin Wilson, product manager at SAP, who attended the meeting, said Customs was willing to listen and will report back after discussing the demands. But he claimed Customs is not prepared to change its opinion: "Customs said they have spoken to big corporations which believed they could meet the requirements of a dual system," he told Silicon.com. "This is disappointing. There is some conflict here. What we really need is for all three sides - Basda, Customs and big corporations - to sit down and talk."

Further meetings between Basda and Customs will follow, but experts say success is unlikely in the near future. Speaking exclusively to Silicon.com, the chief economic advisor to the Confederation of British Industry (CBI), Kate Barker, said: "Some CBI members are keen to pay all their taxes in euros, but I've spoken to Customs myself and they don't want government to start managing currency risks."