I got a recent inquiry from Long Island, concerning a local banks plans to charge VAT on cash withdrawals and cheques being cashed. After speaking with the VAT Unit today, I am advised that this would be illegal. The banks cannot charge you a percentage of your cash withdrawal or cheque being cashed. What the banks can do however, is introduce service fees for cash withdrawals or the cashing of cheques. If they do, then the law allows them to charge VAT on those fees. For example, a $1.00 ATM withdrawal fee in a VAT regime would be $1.08.
Posted on: Tue, 23 Dec 2014 19:37:14 +0000
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