Zipvit loses £1bn VAT appeal

The Supreme Court has dismissed a claim in the long-running Zipvit VAT case over postage costs meaning that HMRC dodged a possible £500m to £1bn VAT pay out 

The Supreme Court has dismissed the appeal from Zipvit Ltd in the test case in respect of the supplies of services by Royal Mail where the mistake regarding VAT exemption was made.

The total value of claims against HMRC was estimated at being between £500m and £1bn.

Zipvit is a trader selling vitamins and minerals and supplied a number of business postal services under contract by Royal Mail.

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