VAT on DELIVERY CHARGES

VAT is applicable to delivery services. VAT registered businesses are are obliged by law to charge the current rate of VAT on any delivery service.

Notes: 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, even where they might be seen as being in direct competition with Royal Mail Group Limited, as Royal Mail Group Limited is the only universal service provider in the UK.

The purchase of unused postage stamps does not attract VAT this is explained in Notice 701/8 postage stamps and philatelic supplies. But we are not selling stamps.

Any delivery charge including the cost of stamps from the Post Office are VAT rated on the whole amount including the cost of those stamps.

Please refer to HMRC for further information by starting here https://www.gov.uk/government/publications/vat-notice-70024-postage-and-delivery-charges/vat-notice-70024-postage-delivery-charges-and-direct-marketing