Is there VAT on charity appeal letters and donation envelopes?
Charity appeal letters and donation envelopes are usually zero-rated (0% VAT) in the UK, but only if they meet HMRC's conditions: supplied to a charity; A letter whose main purpose is asking for donations, not just a form to fill in; envelopes over-printed with the appeal, or clearly different from the charity's usual stationery; not the charity's general stationery (HMRC VAT Notice 701/58, paragraph 6.1).
PRIVATE & CONFIDENTIAL
A good cause. Zero-rated. I am not entirely without feeling.
Charity appeal letters and donation envelopes
0% VAT
An HMRC concession zero-rates the printed stationery a charity uses to ask for money: appeal letters (even personalised ones) and the envelopes that go out and come back with them.
0% as long as it's:
Supplied to a charity
A letter whose main purpose is asking for donations, not just a form to fill in
Envelopes over-printed with the appeal, or clearly different from the charity's usual stationery
Is there VAT on charity appeal letters and donation envelopes?
Charity appeal letters and donation envelopes are usually zero-rated (0% VAT) in the UK, but only if they meet HMRC's conditions: supplied to a charity; A letter whose main purpose is asking for donations, not just a form to fill in; envelopes over-printed with the appeal, or clearly different from the charity's usual stationery; not the charity's general stationery (HMRC VAT Notice 701/58, paragraph 6.1). An HMRC concession zero-rates the printed stationery a charity uses to ask for money: appeal letters (even personalised ones) and the envelopes that go out and come back with them.
When would charity appeal letters and donation envelopes be charged at 20% VAT?
The zero rate applies as long as it's: supplied to a charity; a letter whose main purpose is asking for donations, not just a form to fill in; envelopes over-printed with the appeal, or clearly different from the charity's usual stationery; not the charity's general stationery. If one of those isn't true, it's likely to be standard-rated at 20%.
Is the design and artwork for charity appeal letters and donation envelopes zero-rated too?
If your printer does the design, typesetting or finishing as part of the same zero-rated print job, that work can be zero-rated too. Design bought separately from a studio is a standard-rated service.
Where does this come from?
HMRC VAT Notice 701/58, paragraph 6.1, HMRC's guidance on goods or services supplied to charities. Read the notice on GOV.UK ↗
