TAKS and Appeals Board clash over VAT treatment of gold coins in Faroe Islands

TAKS and the Appeals Board have differing views on the VAT treatment of money.

TAKS imposed a VAT on gold coins that were imported into the Faroe Islands. The individual who imported the coins filed an appeal and received support from the Appeals Board.

TAKS interpreted the law as requiring that the coins either be usable or have been used as a legal means of payment to qualify for exemption from VAT.

However, the Appeals Board disagreed. They stated that the legal provision should not be interpreted so broadly as to exempt all coins from VAT.

In this specific case, the coins originated from a national bank and are therefore exempt from VAT, according to the Appeals Board.

Consequently, the Appeals Board has overturned TAKS’s decision, ensuring that VAT will not be applied to the imported coins in this instance.