EMI Wins Promo Sales Tax Case

EMI has won a six-year legal battle on VAT (sales tax) charged on promotional CDs in the U.K.

Other music companies should lodge a claim with tax officials for refunds on any overpayments, according to tax accountants.

The European Court of Justice today (Sept. 30) confirmed that it was wrong to impose sales tax on promotional CDs of music.

EMI Music brought the legal case against HM Revenue & Customs. The major was looking for refund of around £3.3 million ($5.3 million) on VAT paid on promo copies between 1987 and 2003.

Source: Billboard