Import VAT on UK Stamps

Money_Grabber13579

A bit of a strange one (in my mind).

I recently ordered some UK postage stamps from WOPA+ (they are part of the Gibraltar postal service but also sell stamps from a wide variety of countries around the world).  The stamps which I purchased were UK stamps which are valid for postage in the UK (my reason for purchasing from WOPA+ rather than Royal Mail directly was because I had a discount code).

My stamps are now being held at a Royal Mail delivery office because there is an unpaid UK import VAT charge on them, but I don't understand why this has been applied.  Can anyone help explain to me what I'm missing?

In my mind, there should be no UK import VAT because stamps which are valid for postage in the UK are not subject to UK VAT.  In addition, their FAQs state the following:

Orders are shipped to customers from each Postal Administration (and not by WOPA+ itself) within five business days of receipt from WOPA+

As such, my item should have been shipped from Royal Mail, to a UK address and I've never heard of import VAT being applied to a UK to UK transaction before.

For what it's worth, the prices charged by WOPA+ are Royal Mail prices, so even if VAT is charged on UK stamps in some instances, the application of a UK import VAT charge would mean that I've now paid UK VAT twice on the same items!  It's also a wholly personal transaction i.e. it was not a business transaction.

I will probably just end up paying the import VAT charge (and handling charge) so that I can get my stamps, so this is really just to help me understand why it has been charged in this case.

born_again

Could it be that VAT is on the shipping costs as they are purchased overseas.

Q is vat charged on postage stamps when bought online overseas

A The answer is: yes. If you charge your customer for shipping, then your customer must pay VAT on the shipping costs. Always calculate VAT based on the subtotal amount for the order plus the shipping costs. VAT also applies to other fees included on the invoice, such as travel costs, telephone costs or packaging costs.

Money_Grabber13579

born_again said:

Could it be that VAT is on the shipping costs as they are purchased overseas.

Q is vat charged on postage stamps when bought online overseas

A The answer is: yes. If you charge your customer for shipping, then your customer must pay VAT on the shipping costs. Always calculate VAT based on the subtotal amount for the order plus the shipping costs. VAT also applies to other fees included on the invoice, such as travel costs, telephone costs or packaging costs.

The postage and packaging was free (to me) but in that case, could an element of the price be allocated to shipping? £8 of VAT would seem to be a lot for shipping though.

At the end of the day, the total is only £16 (inc a £8 handling fee) so I think I’ll just pay it and perhaps once I pick it up, it will become clearer as to why VAT has been charged. I assume there will be some documentation supplied which explains it?

Manxman_in_exile

Why don't you (1) ask WOPA+ if they know why you are being charged, and/or (2) ask RM why you are being charged when you go to pay up and collect them?

Money_Grabber13579

Manxman_in_exile said:

Why don't you (1) ask WOPA+ if they know why you are being charged, and/or (2) ask RM why you are being charged when you go to pay up and collect them?

I've sent WOPA+ an email but haven't heard back yet (only sent this morning but thought I'd ask here concurrently as well).

The information I've seen online seems to imply that Royal Mail don't get any information as to the charges that are applied - they have a duty to forward any imported items to Border Force and they only apply what they are told to apply.  Whether that's true or not, I don't know.

Andy_L

Money_Grabber13579 said:

A bit of a strange one (in my mind).

I recently ordered some UK postage stamps from WOPA+ (they are part of the Gibraltar postal service but also sell stamps from a wide variety of countries around the world).  The stamps which I purchased were UK stamps which are valid for postage in the UK (my reason for purchasing from WOPA+ rather than Royal Mail directly was because I had a discount code).

My stamps are now being held at a Royal Mail delivery office because there is an unpaid UK import VAT charge on them, but I don't understand why this has been applied.  Can anyone help explain to me what I'm missing?

In my mind, there should be no UK import VAT because stamps which are valid for postage in the UK are not subject to UK VAT.  In addition, their FAQs state the following:

Orders are shipped to customers from each Postal Administration (and not by WOPA+ itself) within five business days of receipt from WOPA+

As such, my item should have been shipped from Royal Mail, to a UK address and I've never heard of import VAT being applied to a UK to UK transaction before.

For what it's worth, the prices charged by WOPA+ are Royal Mail prices, so even if VAT is charged on UK stamps in some instances, the application of a UK import VAT charge would mean that I've now paid UK VAT twice on the same items!  It's also a wholly personal transaction i.e. it was not a business transaction.

I will probably just end up paying the import VAT charge (and handling charge) so that I can get my stamps, so this is really just to help me understand why it has been charged in this case.

Gibraltar isn't part of the UK, its a British Overseas Territory

Money_Grabber13579

Andy_L said:

Money_Grabber13579 said:

A bit of a strange one (in my mind).

I recently ordered some UK postage stamps from WOPA+ (they are part of the Gibraltar postal service but also sell stamps from a wide variety of countries around the world).  The stamps which I purchased were UK stamps which are valid for postage in the UK (my reason for purchasing from WOPA+ rather than Royal Mail directly was because I had a discount code).

My stamps are now being held at a Royal Mail delivery office because there is an unpaid UK import VAT charge on them, but I don't understand why this has been applied.  Can anyone help explain to me what I'm missing?

In my mind, there should be no UK import VAT because stamps which are valid for postage in the UK are not subject to UK VAT.  In addition, their FAQs state the following:

Orders are shipped to customers from each Postal Administration (and not by WOPA+ itself) within five business days of receipt from WOPA+

As such, my item should have been shipped from Royal Mail, to a UK address and I've never heard of import VAT being applied to a UK to UK transaction before.

For what it's worth, the prices charged by WOPA+ are Royal Mail prices, so even if VAT is charged on UK stamps in some instances, the application of a UK import VAT charge would mean that I've now paid UK VAT twice on the same items!  It's also a wholly personal transaction i.e. it was not a business transaction.

I will probably just end up paying the import VAT charge (and handling charge) so that I can get my stamps, so this is really just to help me understand why it has been charged in this case.

Gibraltar isn't part of the UK, its a British Overseas Territory

I know that, but these are UK stamps (which aren’t supposed to be subject to UK VAT) and supposedly sent by Royal Mail (as I trusted by WOPA+) which is very much a company in the UK.

custardy

Money_Grabber13579 said:

Andy_L said:

Money_Grabber13579 said:

A bit of a strange one (in my mind).

I recently ordered some UK postage stamps from WOPA+ (they are part of the Gibraltar postal service but also sell stamps from a wide variety of countries around the world).  The stamps which I purchased were UK stamps which are valid for postage in the UK (my reason for purchasing from WOPA+ rather than Royal Mail directly was because I had a discount code).

My stamps are now being held at a Royal Mail delivery office because there is an unpaid UK import VAT charge on them, but I don't understand why this has been applied.  Can anyone help explain to me what I'm missing?

In my mind, there should be no UK import VAT because stamps which are valid for postage in the UK are not subject to UK VAT.  In addition, their FAQs state the following:

Orders are shipped to customers from each Postal Administration (and not by WOPA+ itself) within five business days of receipt from WOPA+

As such, my item should have been shipped from Royal Mail, to a UK address and I've never heard of import VAT being applied to a UK to UK transaction before.

For what it's worth, the prices charged by WOPA+ are Royal Mail prices, so even if VAT is charged on UK stamps in some instances, the application of a UK import VAT charge would mean that I've now paid UK VAT twice on the same items!  It's also a wholly personal transaction i.e. it was not a business transaction.

I will probably just end up paying the import VAT charge (and handling charge) so that I can get my stamps, so this is really just to help me understand why it has been charged in this case.

Gibraltar isn't part of the UK, its a British Overseas Territory

I know that, but these are UK stamps (which aren’t supposed to be subject to UK VAT) and supposedly sent by Royal Mail (as I trusted by WOPA+) which is very much a company in the UK.

If it hit border control then its unlikely to have RM involved.
RM has a UK supply building in Edinburgh for stamps.
I cant really advise on VAT on the stamps on import. what is charged in the UK isnt likely relevant. its whether stamps are liable when imported under whatever category they fall under.

born_again

Part of the issue is that while WOPA is based in Gibraltar. They are not the supplier of the goods. As per their FAQ

https://www.wopa-plus.com/en/main/faq/

WOPA+ works as an intermediary between you, the customer, and postal administrations and sellers around the globe.

So are you sure that they are being supplied by a UK company? 

Money_Grabber13579

born_again said:

Part of the issue is that while WOPA is based in Gibraltar. They are not the supplier of the goods. As per their FAQ

https://www.wopa-plus.com/en/main/faq/

WOPA+ works as an intermediary between you, the customer, and postal administrations and sellers around the globe.

So are you sure that they are being supplied by a UK company? 

The application of import VAT would suggest that they aren’t but that isn’t what their FAQs say should happen. They say that every order is passed onto the relevant postal administration to fulfil and the postal administration which deals with UK stamps is Royal Mail. I’ve previously ordered Jersey stamps from WOPA and they were supplied by the Jersey post office.

However, even if they do come from outside the UK, no VAT should be charged on stamps which are valid for postage (which these will be) so I think the charge must have been applied in error. 

I think I’ll have to wait until WOPA+ reply and then try and figure out what has happened from there.

DullGreyGuy

Do you have a link to the exact product you purchased? 

Their FAQ is as clear as mud with answers lke...

How does WOPA+ work?

WOPA+ works as an intermediary between you, the customer, and postal administrations and sellers around the globe.

Who is the "customer"? It'd suggest the seller may not be the postal administrators themselves too.