Postage and delivery charges

By Tolley

The following Value Added Tax guidance note by Tolley provides comprehensive and up to date tax information covering:

  • Postage and delivery charges
  • Postal services
  • Delivered goods
  • Other aspects

This guidance note provides an overview of the VAT treatment of postage and delivery charges For supplies of stamps see the Supplies of stamps and philatelic items guidance note Postal services Only postal services provided by the Royal Mail can be exempted from VAT and other providers are required to charge VAT on similar types of postal services provided This was challenged by TNT Post UK Ltd and the CJEU ruled that the notion of public postal services cover operators who undertake to provide all or part of the universal postal service as defined in Article 3 of Directive 97 67 EC and that the exemption only applies to postal services provided in capacity as the universal service provider It is excluded from the exemption in Article 13A 1 a of Sixth Directive specific services dissociable from the service of public interest that is services which meet special needs of economic operators such as services for which the terms have been individually negotiated The Queen on the application of TNT Post UK Ltd v The Commissioners of Her Majesty s Revenue Customs and Royal Mail Group Ltd C 357 07 Michael Winterhoff acting as liquidator of DIREKTexpress Holding AG v Finanzamt Ulm and Jochen Eisenbeis acting as liquidator of JUREX GmbH v Bundeszentralamt für Steuern C 4 18 C 5 18 Directive 2006 112 EC Art 132 a VPOST3400 Directive 97 67 Art 5 as amended by Directive 2002 39 EC HMRC Notice 700 24 EU law provides a mandatory exemption from VAT for supplies of postal services made by the public postal services In the UK the application of this provision is limited to Royal Mail and covers all of Royal Mail s postal services Royal Mail as the operator providing the public postal service is the only postal body in the UK eligible to exempt postal services from VAT However it has also ruled that exemption applies to the public postal services acting

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