Supplying Printing Companies

Important information for supplying printing companies

Direct marketing via mail (addressed or unaddressed) typically involves the production of printed matter for distribution to a customers list. Many suppliers treated this as a zero rated sale of printed goods. However, HMRC have revised their guidance to confirm that a direct marketing mail service should have VAT charged at 20%.

HMRC acknowledge this was caused by a misunderstanding detailing the treatment in their VAT Notice 700/24. As a result HMRC will not take any retrospective action for supplies made prior to 1 August 2015 where a supplier has zero-rated a separate single supply of direct mail services. However, a transition period exists where suppliers must have started charge VAT correctly.

If you wish to accept the transitional arrangements, to acknowledge that HMRC will not assess any supplies prior to 1 August 2015 and to confirm that you VAT will be charged correctly going forward, a supplier must notify their intention to HMRC by 30 November 2015 by email to john.hegarty@hmrc.gsi.gov.uk