You don't always have to pay VAT

We have to comply with the law when it comes to charging VAT on our products and services, but many of them qualify for 'zero-rating', meaning that we don't have to charge you VAT on them. Here are two tips to avoid paying unnecessary VAT.

Zero-rated printed matter

Most of the printed articles we design and produce for our clients can be VAT zero-rated. Eligible items include publications like newsletters and annual reports, as well as most information packs and leaflets.

This zero-rating only applies to the final supply of the product, so if you handle your own print, this would be your invoice from the printer. If our design work is billed separately, we aren't allowed to zero-rate it. But if we handle the printing for you, we are allowed to zero-rate our entire fee for both design and print - saving you the VAT we would otherwise have to charge on our design work.

VAT zero-rating doesn't apply to stationery or posters (except specific fundraising appeal stationery). For the detailed rules, see the VAT notice on books and printed matter on the HMRC website.

Charity advertising and fundraising

Charity advertising can usually be zero-rated, and in this case we can zero-rate our design work separately.

Certain fundraising materials can be zero-rated: appeal letters and envelopes, stickers, badges and collection boxes.

You need to supply us with a declaration in order for us to be allowed to zero-rate advertising and fundraising work. See the VAT notice on charity advertising and fundraising on the HMRC website for details and a sample declaration.