Value Added Tax Act 1994 Schedule 10A paragraph 5

Treatment of postage stamps

Schedule 10A paragraph 5 deals with how postage stamps are treated for VAT purposes when they are regarded as face-value vouchers.

• Postage stamps are treated as face-value vouchers under the VAT rules
• The amount paid for a postage stamp is generally ignored for VAT purposes
• VAT only applies to any premium charged above the stamp's face value
• This means a stamp sold at its face value carries no separate VAT charge on the sale