Postal Services

Postal services

It seems to be a poorly kept secret that a mail order company called Zipvit has appealed following the TNT case against HM Revenue and Customs.

The idea that an exempt supply contains ’embedded’ VAT is one that appears to have no support in either UK or EU law. All that has happened is that for some businesses Royal Mail’s services are no longer exempt from VAT.

The problem for any claimant faced with this issue is that they have no valid VAT invoices, or any other evidence probably, that will support their claim that they have incurred VAT on supplies received from Royal Mail prior to the change in VAT treatment.

Anyone considering making a claim against HMRC on this issue needs to consider whether there is a reasonable chance of them winning their case. Even if it is won in the lower Court, HMRC will no doubt appeal and so it will go on until it reaches the Supreme Court or is referred to the CJEU.

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