Is There VAT on Postage?
The VAT status of postage stamps, Royal Mail services, and courier delivery charges in the UK.
VAT on stamps
Royal Mail postage stamps are exempt from VAT. This applies to all standard first and second class stamps, large letter stamps, and stamps for small parcels. The price you pay at the Post Office or when buying online is the total cost with no VAT added.
Quick answer
Royal Mail postage stamps are VAT-exempt. However, some additional Royal Mail services and most courier delivery services do include VAT at the standard 20% rate. If you are a VAT-registered business, you cannot reclaim VAT on stamps because they are exempt, but you can reclaim VAT on courier services where VAT is charged.
VAT on postal services
Standard letters, large letters, and parcels sent at counter rates through Royal Mail as part of the Universal Service are VAT-exempt.
Premium services like Special Delivery, Click & Drop labels, and business bulk mail services may have VAT applied.
Only Universal Service items are exempt. Express, tracked, and business services often include VAT.
VAT on courier delivery
Courier services from companies like DHL, DPD, Evri, and UPS are standard-rated for VAT purposes. This means 20% VAT is included in or added to their delivery charges. VAT-registered businesses can reclaim this VAT through their VAT returns.
Stamp pricing questions? Check second class stamp prices or see when stamp prices will change.
Business implications
If you run a business that ships products, the VAT treatment of postage affects your costs. Stamps are VAT-exempt (no VAT to reclaim), while courier invoices include reclaimable VAT. For high-volume shippers, using VAT-rated courier services can be more tax-efficient than stamps.
Packaging with VAT invoices
All ProcuraPack orders come with a VAT invoice, making it easy for businesses to reclaim VAT on packaging costs.
Browse business packagingFrequently asked questions
No, Royal Mail postage stamps are VAT-exempt.
Yes, most courier services like DHL, DPD, and Evri include 20% VAT in their delivery charges.
Not on VAT-exempt stamps. You can reclaim VAT on courier services where VAT is charged if you are VAT-registered.
Special Delivery purchased with stamps may be exempt, but Click & Drop versions often include VAT. Check the receipt.
If you are VAT-registered, shipping charges to UK customers should include VAT as part of the supply.
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