Q:

Is VAT charged on stamps?

A:

First and second class stamps are VAT exempt, reports the Royal Mail. International standard, economy and signed shipping, along with all franked mail, special delivery guaranteed stamps and HM Forces mail are exempt from VAT. Free Royal Mail products are also exempt.

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Full Answer

VAT is applicable on business class mail, Royal Mail same day service, Tracked 24 and Tracked 48 service and first and second class account mail service. Signed for service is not VAT exempt if it is purchased as an add-on to another standard service. Special delivery guaranteed by 1 p.m. and by 9 p.m. is not considered VAT exempt.

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