Published: 10.30 Europe/London, June 7, 2011
Virgin Media has confirmed that it has received a tax refund of £81.5 million (€91.4 million) from HM Revenues and Customs covering VAT payments. At the same time, the current contingent liability has been reduced to £23.6 million.
The cablenet declined to give further details on the matter.
In June 2009, Virgin moved part of its channel playout to Luxembourg, establishing Virgin Media Entertainment that now holds part of the billing relationship with Virgin’s UK cable customers.
Luxembourg maintains a VAT rate of 15%, compared to 20% in the UK, 17.5% prior to January 1, 2011.
The sum will be reflected in the company’s financial statements for the second quarter of 2011.