Businesses in line for £220m VAT windfall

UK businesses could receive a tax windfall of more than £200m if an attempt to recover VAT on postal services is successful, reports Nick Huber.

Law firm DLA Piper said its application for a lead claim in the first-tier tax tribunal to recover VAT from HMRC has been accepted. DLA reckons that businesses could recover more than £220m of credit for input tax on Royal Mail's postal services if its tribunal appeal on behalf of Zipvit, a vitamin retailer, is successful.

In the past, Royal Mail had treated postal services as exempt under the Value Added Tax Act 1994. However, a previous case brought by TNT determined that the vast majority of Royal Mail services should, in fact, have been chargeable to VAT under the Sixth VAT Directive or Principal VAT Directive, DLA said.

Continued...

» Register now

The full article is available to registered AccountingWEB members only. To read the rest of this article you’ll need to login or register.

Registration is FREE and allows you to view all content, ask questions, comment and much more.

Comments

Cash windfall for UK VAT Registered Companies

emily brady | | Permalink

UK VAT registered companies can secure a significant cash windfall that will create an unbudgeted profit for your firm this year. Claim values will be significant for those with high Royal Mail postage spend (whether Franked or other business post in the UK). You must act quickly. Deadline for submission of your VAT reclaim is early March. Contact Avid Pear who specialises in making VAT reclaims on www.avidpear.com or via email on info@avidpear.com who can help you, prepare, optimise and submit your claim using their specialist teams.