A full background of this case may be found here

In summary: It was previously decided that certain supplies made by Royal Mail (RM) to its customers were taxable. This was on the basis of the TNT CJEU case. RM had treated them as exempt. HMRC was out of time to collect output tax, but claims made by recipients of RM’s services made retrospective claims. These claims were predicated on the basis that the amount paid to RM included VAT at the appropriate rate (it was embedded in the charge) and that UK VAT legislation stipulates that the “taxable amount” for any supply, is the amount paid by the customer including any VAT included in the price.

Update

We understand that Zipvit’s appeal against the decision by the Upper Tribunal that the relevant input tax was not recoverable has been listed on the Court Of Appeal’s register and is due to be heard in January 2018.

There are a lot of cases stood behind Zipvit and the amount of VAT involved is significant.  If you have an appeal stood behind this case, or act on behalf of a business which has, we recommend that a review of the position is carried out in light of the latest developments. We can assist which such a review if required.