Do I charge VAT on stamps?

[fix]

I've started supplying a customer with stamps, as an addition to other goods they buy from me (a competitor supplies stamps, so it stops them going elsewhere).

I know when I buy stamps from Royal Mail I don't get charged VAT, but as I'm VAT registered I assume I need to charge my customer VAT on them?


Thanks

 

[Lease4Less]

http://customs.hmrc.gov.uk/channels...ntent&id=HMCE_CL_000855&propertyType=document

This link should cover it for you.

 

[Jenni384]

If you're just selling new, unused UK postage stamps themselves, they are exempt from VAT.

As long as exempt sales form only a small part of your turnover, you can carry on reclaiming all input VAT in the normal way (if they are over a certain amount, partial exemption rules may apply).

This is in contrast to charging for postage, where the VAT treatment follows the supply (e.g. if you're selling standard rated goods, you standard rate the postage you charge, if you're selling xero rated goods, you zero rate the postage charge).

 

[MyAccountantOnline]

If you charge your customers for postage you may have to charge VAT but have a read here as it depends on the circumstances -

http://customs.hmrc.gov.uk/channels...ntent&id=HMCE_CL_000114&propertyType=document

 

[fix]

Thanks for all the replies.

I can't find anything on the links about specifically selling new postage stamps, as I guess people don't generally do it as they can't make profit from it.

Jenni384 so it's the stamp that is VAT free rather than royal mail not charging VAT if you get what I mean?

NicolaJ yes I charge customers VAT on delivery, this is just specically about reselling stamps

Thanks

 

[Lease4Less]

Thanks for all the replies.

I can't find anything on the links about specifically selling new postage stamps, as I guess people don't generally do it as they can't make profit from it.

Jenni384 so it's the stamp that is VAT free rather than royal mail not charging VAT if you get what I mean?

NicolaJ yes I charge customers VAT on delivery, this is just specically about reselling stamps

Thanks

It is there my friend, it's in paragraph 2.3:

2.3 Valid United Kingdom or Isle of Man Postage stamps

• If you sell unused United Kingdom or Isle of Man stamps that are valid for postage no VAT is chargeable if you sell them at or below face value. However, you must account for VAT at the standard rate on any amount by which the price you charge exceeds their face value.

 

[fix]

Don't know how I missed that, thank you