HMRC have flexed their muscles at last and have confirmed their position on Single Source VAT mitigation for postage. It’s not good news for many in the industry that have been working with single-source solutions for Financial Services and Charity Direct Mail.
The DMA (UK) received confirmation from HMRC this week, with the following extract clearly stating their position –
“If postal services are provided in addition to the printed matter itself then the supply is not a composite supply of goods to your customer, but is a supply of services as the “goods” are sent direct to the recipient rather than your customer.”
Read more on the DMA (UK) web site – Click here