SourceBio confirms end of VAT dispute with HMRC
Sourcebio International
115.00p
17:15 29/12/22
Laboratory service provider SourceBio International updated the market on its VAT dispute with HMRC on Wednesday, confirming the matter had been brought to a close.
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The AIM-traded firm said in December that HMRC had issued it with a letter challenging its VAT treatment of Covid-19 PCR testing services.
It said HMRC suggested that some of the services should have been treated as standard rated for VAT purposes.
“On professional advice, the group treated the accounting for Covid-19 PCR services as VAT exempt,” SourceBio said in its statement.
“The group took advice, which supported the accounting treatment adopted and the board concluded that no provision should be made in its financial statements.”
HMRC then reverted to its policy team and its solicitors office, with SourceBio announcing previously that on 25 July, HMRC verbally informed its tax advisors that it did not intend to pursue its claim for VAT to be chargeable on Covid-19 PCR services, and that it expected to put that in writing.
“The group is pleased to advise that it has now received written confirmation that HMRC has accepted the group's position and that their enquiry is now resolved,” SourceBio confirmed on Wednesday.
“The board now considers the matter closed.”
At 1432 BST, shares in SourceBio International were down 4% at 120p.
Reporting by Josh White at Sharecast.com.