I know this is an old question but I have to post my answer - maybe someone will find it useful. I can't believe how many people are recommending REST over SOAP. I can only assume these people are not developers or have never actually implemented a REST service of any reasonable size. Implementing a REST service takes a LOT longer than implementing a SOAP service. And in the end it comes out a lot messier, too. Here are the reasons I would choose SOAP 99% of the time:
1) Implementing a REST service takes infinitely longer than implementing a SOAP service. Tools exist for all modern languages/frameworks/platforms to read in a WSDL and output proxy classes and clients. Implementing a REST service is done by hand and - get this - by reading documentation. Furthermore, while implementing these two services, you have to make "guesses" as to what will come back across the pipe as there is no real schema or reference document.
2) Why write a REST service that returns XML anyway? The only difference is that with REST you don't know the types each element/attribute represents - you are on your own to implement it and hope that one day a string doesn't come across in a field you thought was always an int. SOAP defines the data structure using the WSDL so this is a no-brainer.
3) I've heard the complaint that with SOAP you have the "overhead" of the SOAP Envelope. In this day and age, do we really need to worry about a handful of bytes?
4) I've heard the argument that with REST you can just pop the URL into the browser and see the data. Sure, if your REST service is using simple or no authentication. The Netflix service, for instance, uses OAuth which requires you to sign things and encode things before you can even submit your request.
5) Why do we need a "readable" URL for each resource? If we were using a tool to implement the service, do we really care about the actual URL?
Need I go on?