This guidance note provides information on:
- •
VAT on postage
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VAT on delivery charges
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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
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not all the postage services supplied by Royal Mail are exempt from VAT
Notice
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