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Businesses lodge VAT claims for using Parcelforce

13th April, 2010

Mail-order businesses, internet retailers and other users, including Royal Mail's Parcelforce subsidiary, could potentially backdate VAT reclaims for the past four years following a ruling by HM Revenue and Customs.

Royal Mail has to introduce VAT on a number of its services after losing a European Court of Justice dispute brought by TNT, the private-sector mail and parcels carrier. TNT argued it was at a competitive disadvantage with Royal Mail because it had to add VAT to its charges in the business post market.

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