Commentary

700/24/20 Postage, delivery charges and direct marketing

Part V8 HMRC Notices
Part V8 HMRC Notices | Commentary

700/24/20 Postage, delivery charges and direct marketing

Part V8 HMRC Notices | Commentary

700/24/20
Postage, delivery charges and direct marketing

December 2020

This notice cancels and replaces Notice 700/24 (June 2015). It applies to supplies made from 1 January 2021.

1 Overview

1.1 What this is notice about

This notice explains how VAT applies to charges made for postage and delivery services and also the treatment of direct marketing services involving the distribution of printed matter.

1.2 Who should read this notice

You should read this notice if you—

  1.  

    •     supply goods which you deliver to your customer;

  2.  

    •     provide a delivery service involving other people's goods;

  3.  

    •     operate a direct marketing service that involves printed matter.

1.3 Postal charges and VAT exemptions

Postal services provided by the Royal Mail Group Limited under its remit as the universal postal service provider in the UK are exempt from VAT if they are subject to price and regulatory control. This exemption does not extend to similar services provided by other suppliers.

The purchase of unused postage stamps does not attract VAT – this is explained in Notice 701/8 “Postage stamps and philatelic supplies”. But if any delivery charge you make to your own customers includes the cost of stamps you buy from the Post Office you may have to charge VAT on the whole amount including the cost of those stamps.

Main narrative treatment—V3.105, V3.155, V4.126.

2 Delivered goods

2.1 Introduction

Where goods are delivered to a customer and the price includes an amount for this service this is a supply of delivered goods. The way any delivery charge is treated for VAT purposes depends on the circumstances in

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