How Much VAT? by Tenfold

Is there VAT on merchandise?

Merchandise is standard-rated (20% VAT) in the UK under HMRC VAT Notice 701/10, section 2.

Twenty per cent.I'll put the kettle on.
I ♥ VAT

Merchandise

20% VAT

Merchandise isn't printed matter in the VAT sense, so it's standard-rated.

HMRC VAT Notice 701/10, section 2

Need it printed?

Tell Tenfold the quantity, size and deadline. We'll put together a quote for your job.

Get a quote for merchandise →

Why is merchandise 20%?

This one is not really a question about print at all. Section 2 restricts Group 3 to goods produced on paper and similar materials such as card, so a mug, a pen, a tote bag, a water bottle or a lanyard is outside it before anyone looks at what is printed on the item. The amount of printing does not matter and neither does how good it is. The only near miss is at 3.7, where children's picture books may be printed on plastic or textiles, which is about books rather than about branded goods.

What decides it?

Not paper or card, so Group 3 never applies.

Where does this come from?

HMRC VAT Notice 701/10, section 2, HMRC's guidance on zero rating books and printed matter. See the notices we work from.

Some real jobs

  • Printed mugs and pens for an event20%

    Not goods produced on paper or card.

  • Tote bags printed with a logo20%

    Outside Group 3 on substrate, and paper bags are listed as standard-rated in any case.

  • The printed brochure handed out with them0%

    Judged separately as printed matter.

Check something else