Value Added Tax

Exemption ― supplies of stamps and philatelic items

Produced by Tolley
  • 28 Oct 2021 11:21

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

  • Exemption ― supplies of stamps and philatelic items
  • Postage stamps
  • Stamped stationery
  • First day covers
  • Philatelic items
  • Postage charges

Exemption ― supplies of stamps and philatelic items

This guidance note provides an overview of the VAT treatment of supplies of stamps, etc.

Postage stamps

Within the UK and the Isle of Man (hereafter called the UK), the supply of valid postage stamps that are used to pay for postal services is a supply of services. However, the value of the supply is disregarded for VAT purposes except to the extent that the consideration exceeds the face value of the stamp. The ‘face value’ is the amount stated on or recorded in the stamp, or the terms and conditions governing its use. However, the subsequent use of the stamp constitutes payment for an exempt supply of postage.

The following conditions must be satisfied before an item is a valid postage stamp:

  1. the stamp must be unused, and of the present monarch’s reign

  2. the value must be:

    1. £1 or a multiple of £1

    2. in decimal currency, or

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