VPOST5000 - International services

Mail is treated as freight (and thus goods) for the purposes of the place of supply of services rules and the zero- rating for international freight transport.

Up to 31 December 2020 (end of the BREXIT transitional period)

Supplies to business customers belonging outside the UK were outside the scope of UK VAT.

Supplies to business customers belonging in the UK were zero-rated in respect of mail being delivered to or from a place outside the EU.

Supplies to non-business customers in the case of:

• mail going to or from the UK to a place outside the EU was zero-rated/outside the scope of UK VAT;
• mail going from the UK to an address within the EU was exempt or standard-rated, depending on the service involved

From 1 January 2021

Supplies to business customers belonging outside the UK are outside the scope of UK VAT.

Supplies to non-business customers in the case of mail going to or from the UK to a place outside the UK is zero-rated/outside the scope of UK VAT.

There is more about this in VAT Notice 744B: Freight transport and associated services.