By David Hansen (March 28, 2022, 6:51 PM EDT) — A group of 340 businesses cannot deduct most value-added input taxes from services they purchased through the U.K.’s national mail service from 2009 to 2012 because most of what they bought is exempt from VAT, a British court ruled Monday.
The Royal Mail performed “public postal services” exempt from VAT under European Union law until the U.K. restricted its public service responsibilities in 2012 to delivering single-piece mail, the High Court for England and Wales said. Because the Royal Mail didn’t pay VAT, there was nothing the businesses could deduct as input tax, according to the court.
The claims, from businesses…
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