VAT invoices and input VAT
Following the CJEU’s clarification of the Royal Mail’s VAT exemption in TNT Post UK (Case C-357/07) it became clear that postal supplies made by the Royal Mail to Zipvit Ltd although originally treated as exempt should have been standard rated. However as Royal Mail treated the supplies as exempt it neither charged VAT nor provided Zipvit with a VAT invoice in respect of the supplies. In addition HMRC was either out of time to claim output VAT from the Royal Mail or considered that the Royal Mail would have had a defence of legitimate expectation to such a claim based on HMRC’s published guidance at the relevant time. Accordingly no VAT was paid on historical supplies covered by the CJEU judgment. Nevertheless Zipvit sought to recover input...
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VAT invoices and input VAT
Following the CJEU’s clarification of the Royal Mail’s VAT exemption in TNT Post UK (Case C-357/07) it became clear that postal supplies made by the Royal Mail to Zipvit Ltd although originally treated as exempt should have been standard rated. However as Royal Mail treated the supplies as exempt it neither charged VAT nor provided Zipvit with a VAT invoice in respect of the supplies. In addition HMRC was either out of time to claim output VAT from the Royal Mail or considered that the Royal Mail would have had a defence of legitimate expectation to such a claim based on HMRC’s published guidance at the relevant time. Accordingly no VAT was paid on historical supplies covered by the CJEU judgment. Nevertheless Zipvit sought to recover input...
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