This solution deals with the nature and circumstances in which you can zero-rate books.

The printing/fulfilment industry uses two VAT rates: Standard Rate and Zero Rate.

There are three primary routes through which a customer’s direct marketing communication may be fully or partially zero-rated via single sourcing:

1. Single Sourcing on all preparatory and distribution services
2. Package Test Relief
3. Extra Statutory Concession (ESC) for Charities

The Zero Rated Mail Solution helps you achieve zero VAT rating on some or all of your mail piece using these methods.

Single Sourcing

All services whether ancillary, integral or incidental to the end product (e.g. list buying, creative, print management etc) can only be zero-rated if there is a single source of supply to the client of that zero-rated product.

The customer could ask for its suppliers to agree to provide their services through a single supplier, and thus the VAT would become zero rated on all the services contributing to the end product, provided it met the Package Test and/or the ESC for Charities. Please refer to the relevant HMRC Notice document for more information.

TNT Post have partnered with a range of print and fulfilment partners who can act as a single supplier on your behalf. The selected partners have in-depth knowledge and expertise that will ensure that your mail pack complies with the zero-rated criteria.

Please contact your TNT Post Account Manager for more details on the recommended partners.

Package Test & Extra Statutory Concession (ESC) for Charities

The package test can only be applied if the mail pack contains certain printed matter only. The package test cannot be a possible route to a zero-rating if the pack contains anything which is not printed on paper or card. Table 1 shows the VAT liability for some common print items. A more extensive list is given in Section 8 of VAT Notice 710/10.

For more information on assuring your mail pieces is zero-rated please view the Customer Guide

View Zero Rated Customer Guide

Current Zero Rated Customer Guide

Click here to view the Zero Rated Customer Guide

The above is for guidance only and Customers must seek their own tax advice on their own circumstances.