Input tax recovery denied

Zipvit sold vitamins and minerals by mail order and used Royal Mail to deliver them. Royal Mail did not charge VAT on the services because it believed these were exempt. After the Court of Justice of the EU (CJEU) ruling in R (on the application of TNT Post UK Ltd) v CRC (Case C-357/07) [2009] STC 1438 Zipvit claimed input VAT on its supplies. HMRC rejected the claims.

Zipvit’s appeal escalated through the UK courts and the CJEU before finally returning to the Supreme Court.

Lord Briggs and Lord Sales delivered the judgment with which the other members of the panel agreed. They said the CJEU’s ruling that the conditions for VAT recovery were not met because the VAT in question had not been ‘due or paid’ was ‘clear in effect’ and enabled the court to deliver its decision without a further hearing.

On whether HMRC should...