ONLINE VAT GETS FASHIONABLE

On 1 December 2009, the Value Added Tax (Amendment) (No.4) Regulations 2009 came into force.  These Regulations require "specified" taxpayers to file their VAT returns on-line, and pay their VAT liability, electronically for accounting periods beginning on or after 1 April 2010.

"Specified" taxpayers include fashion industry businesses such as wholesalers, retailers and fashion houses who meet one of the following conditions and are so notified in writing by HMRC:

• VAT registered fashion businesses with an annual VAT-exclusive turnover at any time on or after 31 December 2009 of £100,000 or more.
• Fashion businesses registered on or after 1 April 2010, irrespective of turnover.
Failure to comply with compulsory electronic filing in respect of accounting periods ending on or after 31 March 2011 may result in a penalty, calculated by reference to the taxpayer's annual VAT-exclusive turnover.
HMRC is entitled to use any available figures that it determines are fair and reasonable to calculate turnover and those figures are treated as correct.

LOUIS VUITTON v EBAY

The Latest Round

Louis Vuitton has been successful in its trademark infringement claim against Ebay in France.  Ebay was ordered to pay just under €250,000 for purchasing misspelled variants of Louis Vuitton which in the view of the French Court assisted counterfeiters to sell their knock offs.

In the interim, the French Courts remain the brand owners forum of choice.  However, with the ECJ Judgment in the Google Adwords case due at the end of March the climate for sites, such as Ebay and Google which are alleged to “facilitate” infringement may be just about to shift.

RETAIL RENTS

Over the last few months several articles have been published by the Fox Williams Real Estate Team suggesting ways in which those of our clients with property interests can take steps to reduce their operating costs.  Those tips apply as equally to those of our clients associated with the fashion industry as to those with multi million pound property portfolios.  One of our suggestions has been an approach to the Landlord with a request to pay rent monthly rather than quarterly.  Fox Williams knows of several instances where this has been successful and is pleased to see that in a recent Monthly Rent Survey the British Retail Consortium “BRC”, an organisation representing the needs of the retail industry recently reported some degree of  success in its own campaign to promote monthly in preference to quarterly rents.  Landlords appear to have responded in a positive the way, at least as regards new leases with the results of the survey suggesting that that two thirds of respondents leases granted since January 2008 have included provision for monthly rental payments albeit not necessary on a permanent basis.  Where applications have been successful on existing leases it appears that Landlords are making a charge for permitting this flexibility.