Postage, packing and delivery within the UK included in the sales contract but charged for separately, for example, mail order
VAT treatmentThe same rate as the goods being delivered or posted
What this means for your business
- Charging VAT
- The VAT treatment depends on the specific circumstances of the supply, as described above.
- Reclaiming VAT
- Input tax recovery will depend on which VAT treatment applies to your circumstances — check the notes above or the official guidance below.
Official guidancePostage, packing and delivery within the UK charged as an optional extra is always standard-rated — VAT Notice 700/24 (opens in a new tab)