Letters can be 0% or 20% VAT in the UK depending on the job (HMRC VAT Notice 701/10, paragraph 4.3). Each one is personalised with a name or address: 20% VAT. Same letter for everyone, blank except for name, address, reference and signature: 0% VAT. A charity's appeal letter asking for donations: 0% VAT.
PRIVATE & CONFIDENTIAL
Interesting. I'll need the particulars.
Letters
It depends
A letter personalised with the recipient's name or address is standard-rated. A generic printed letter can be a leaflet.
Letters can be 0% or 20% VAT in the UK depending on the job (HMRC VAT Notice 701/10, paragraph 4.3). Each one is personalised with a name or address: 20% VAT. Same letter for everyone, blank except for name, address, reference and signature: 0% VAT. A charity's appeal letter asking for donations: 0% VAT. A letter personalised with the recipient's name or address is standard-rated. A generic printed letter can be a leaflet.
How do I know which VAT rate applies to letters?
Each one is personalised with a name or address: 20% VAT. Same letter for everyone, blank except for name, address, reference and signature: 0% VAT. A charity's appeal letter asking for donations: 0% VAT.
Where does this come from?
HMRC VAT Notice 701/10, paragraph 4.3, HMRC's guidance on zero rating books and printed matter. Read the notice on GOV.UK ↗