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, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Owner-Managed Businesses

Wholly and exclusively

Wholly and exclusivelyFor both income tax and corporation tax purposes, one of the fundamental conditions that must be satisfied for an item of expenditure to be deductible, is that it must incurred ‘wholly and exclusively’ for the purposes of the trade, profession or vocation. References to CTA

14 Jul 2020 14:00 | Produced by Tolley Read more

Employment Tax

Parking provision and expenses

Parking provision and expensesCar parking facilities at or near to the employee’s workplaceThere is an exemption from tax and NIC where an employer provides parking, or pays for or reimburses an employee for the costs associated with car parking at or near the place of work; there are no reporting

14 Jul 2020 11:09 | Produced by Tolley Read more

Corporation Tax

Withholding tax

Withholding taxIntroductionUK tax must be withheld on UK payments including:•interest•royalties•rental incomeUK withholding tax may be reduced under the provisions of a double tax treaty (DTT). Prior to 1 June 2021, payments of interest and royalties made to EU resident associated companies were

14 Jul 2020 14:01 | Produced by Tolley Read more

��Ƶ