Liability ― postage and delivery charges

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note provides information on:

•
VAT on postage
•
VAT on delivery charges
•
the limited circumstances when postage and delivery charges may be treated as a disbursement

For information on the VAT treatment of supplies of stamps, please refer to the Liability ― supplies of stamps and philatelic items guidance note.

VAT on postage

If a business recharges the cost of postage to a customer the VAT treatment of the recharged postage should follow the VAT treatment of the main supply. To the extent that a supplier has correctly charged VAT, the customer can recover the VAT as input tax, subject to the normal rules. For information about the conditions for recovering VAT as input tax, please refer to the Input tax - conditions for recovering VAT guidance note.

Key points in relation to VAT on postage include:

•
Royal Mail is the only organisation in the UK that can make an exempt supply of postage
•
not all the postage services supplied by Royal Mail are exempt from VAT

Notice

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Trusts and Inheritance Tax

Tax on UK resident beneficiaries of non-resident trusts ― overview

Tax on UK resident beneficiaries of non-resident trusts ― overviewIntroductionUK resident beneficiaries of non-resident trusts are subject to UK tax on payments or benefits received from the trust. They are liable for income tax on income distributions from the trust and they may also be liable to

14 Jul 2020 13:47 | Produced by Tolley Read more

Autumn Budget 2024

Exemption ― insurance ― overview

Exemption ― insurance ― overviewThis guidance note provides an overview of the VAT treatment of insurance products and should be read in conjunction with the Insurance ― specific transactions and Exemption ― insurance ― brokers and agents guidance notes.Is insurance exempt from VAT?Supplies of

Value Added Tax

Holding companies ― VAT status of activities

Holding companies ― VAT status of activitiesThis guidance note examines how to determine the VAT status of a holding company’s activities. In particular, it looks at:•when a holding company is or is not in business•if a holding company is in business, whether its activities are exempt or taxableThe

14 Jul 2020 17:13 | Produced by Tolley Read more

��Ƶ