Certainty of VAT

They say there are only two real certainties in life and in the UK, one of those certainties is VAT or value added tax. VAT is charged on goods and services in the UK depending on their use and cost, however, VAT does not apply across the board to most industries, and therefore not all of your business printing or stationery will be charged with an additional VAT on top.

Having VAT charged on a printing project depends on the document’s format, size, content and what it will be used for. Most everyday regular printing is assessed by HM Customs and Revenue (HMCR) as standard rated, meaning you must pay a VAT of 17.5%. Regular printing includes business stationery such as letterheads, compliments slips, business cards, postcards, folders, invitations, posters, tickets and greeting cards.

Some of your professionally printed office documents can be exempt though, and these may include books, booklets, brochures, pamphlets and leaflets, in certain circumstances. However, if your printed document has an area to be written on – like a form for example – or is a leaflet offering free entry to an event or a discount, then it will be subject to VAT.

Unfortunately, because the VAT rules are so varied across the different types of printing and their uses, some printing companies just charge VAT on all of their printing projects to save them the hassle of categorising and calculating the correct tax for the correct items.

It is unfortunate for you, because as a business owner, you probably know when you have to apply VAT to your goods and services, but are unsure about when it applies to the products or services you purchase. Therefore, make sure you review your printing quote carefully and ask straight away whether your printing project really does need to be charged VAT.

For more information about VAT charges and to find a printing company who will take the time to charge your printing projects correctly, contact Print Compare now.