Applying the 20% rate to this value gives an effective VAT rate of 5%. This figure is reached by calculating a value for duty using the appropriate duty method, adding any additional costs (see paragraph 3.1 of Imports (VAT Notice 702)) and multiplying the total by 25%. Some items of philatelic interest are eligible for a reduced valuation at importation which gives an effective VAT rate of 5%.
#Postage stamps full#
If you do not meet the conditions of the scheme, VAT will be due on the full selling price. You can find further information in The Margin and Global Accounting Scheme (VAT Notice 718). 5.2 Value for VAT of philatelic supplies treated as collector’s itemsĬollections and collectors’ pieces of philatelic interest may be treated as collectors’ items and you may be able to account for VAT on the difference between your purchase and selling price. Philatelic collector’s items are liable to VAT at the standard rate, but the tax may not always be due on the full value. Philatelic collectors’ items 5.1 VAT liability You should account for VAT on other philatelic supplies on their full value. If you sell any other philatelic items which consist of, or contain, stamps that are unused and valid for postage in the UK or the Isle of Man, you should account for VAT on the full amount that you charge less the face value of the valid stamps. But they may be eligible for the margin scheme for second-hand goods, works of art, antiques and collectors’ items, see section 5. 4.4 Subsequent sale of first day covers and collectors’ itemsįirst day covers and other philatelic collectors’ items are taxable at the standard rate. You cannot deduct the face value of the stamps from the taxable amount. If you arrange for the envelope with the new stamps to be posted to your customer on their first day of issue, you must account for VAT at the standard rate on the full selling price of the first day cover. If you sell an envelope with unfranked stamps (whether the stamps are fixed to the envelope or not) for your customers to post themselves, you can disregard the face value of the unused stamps and account for VAT on the rest of your charge only. 4.2 Sale prior to posting of first day envelopes and stamps First day covers and other philatelic supplies 4.1 First day coversĪ first day cover is an envelope bearing postage stamps with a postmark of the first day of their issue. If you sell stamps that are not valid for postage they may be able to be treated as collector’s items, see section 5. 3.4 Value for VAT of stamps treated as collectors’ items UK and Isle of Man stamps of earlier reigns or which have a value expressed in shillings or old pence are no longer valid for postage and are therefore taxable at the standard rate. 3.3 Unused, invalid UK and Isle of Man stamps 3.2 Foreign stampsĪll foreign stamps, even if they are valid for postage abroad, are taxable at the standard rate. Other stamps 3.1 Used stampsĪll used stamps are taxable at the standard rate. This applies whether the stamps are printed on the stationery or are ordinary postage stamps that have been stuck on. If you sell stamped stationery that is unused and valid for postage in the UK or Isle of Man, you should account for VAT at the standard rate on the amount you charge less the face value of the stamps. But you must account for VAT at the standard rate on any amount the price you charge exceeds their face value. If you sell unused UK or Isle of Man stamps that are valid for postage no VAT is chargeable if you sell them at or below face value.
displayed as being £1 or a multiple of £1.
Valid postage stamps are unused stamps of the present monarch’s reign on which the value is: Valid UK and Isle of Man stamps are the payment for a postal service that is exempt from VAT.
#Postage stamps free#
Stamps valid for postage in the UK 2.1 Some stamps are VAT free Postage, delivery and direct marketing (VAT Notice 700/24).
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