Worcestershire businesses set to benefit from Royal Mail VAT reclaim
County businesses could receive rebates for VAT payments made on Royal Mail postal services stretching back years, thanks to a European Court of Justice ruling.
This means businesses might be able to claim back VAT going back four years.
The ruling relates to the VAT liability of Royal Mail's postal services. Royal Mail is being forced to introduce VAT on a number of its services in line with other postal service providers operating in the private sector. The ECJ ruled that the current VAT exempt status of Royal Mail postal services distorted competition in the open market.
Services previously billed by Royal Mail as VAT exempt could be treated as VAT inclusive, and companies could claim the relevant VAT percentage of amounts previously paid.
Angela Taylor, associate director at Worcester-based Rabjohns LLP, said this was very welcome news for Worcestershire businesses.
"I believe that there are many Worcestershire businesses which could benefit from this ruling."
"Any business which has had a contract with Royal Mail should submit a protective VAT claim now."
For more information contact Angela Taylor at Rabjohns on 01905 732100 or e-mail her at at@rabjohns.co.uk.
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