The Supreme Court has handed down an unanimous judgment in the long-running case of Zipvit Ltd v Commissioners for Her Majesty’s Revenue and Customs [2020] UKSC 15, referring the case to the Court of Justice of the European Union (CJEU) as the relevant directive is not clear.

The case relates to online vitamins and supplements retailer, Zipvit, and has been running through the courts since 2014. It concerns two main issues: (i) whether a trader can deduct input VAT in the absence of a VAT invoice; and (ii) whether EU law, which provides that a trader has an entitlement to deduct, from the VAT which he is liable for, the VAT due or paid on supplies which are carried out or to be carried out by another taxable entity, is applicable.