What is VAT in UK: Understanding VAT in Printing

Do you also want to market your products with printed marketing solutions? If yes then there are undoubtedly a lot of options like hoardings, branding panels and many more. But from a business point of view, do you have to pay tax on the printable items you buy? Well, the answer is not either yes or no but it depends. The conditions that apply for VAT in printing can help you to cleverly design marketing prints and save VAT. So let’s understand VAT in the UK, especially on the printable items with this blog.

What Does VAT Mean in UK?

Most countries in the world charge taxes on the products and services being sold to collect capital which is used towards the country’s and its people’s benefits. From the roads and other infrastructure to healthcare and education, a country’s government has to provide many things to its citizens. So, all this is done with tax money. Taxes are also put on the earnings of individuals and businesses but the tax that is put on the goods and services makes up a large chunk of the government’s earnings.

In the UK, the tax which is put on goods and services is called VAT. VAT stands for value-added tax which was introduced in 1973 in the UK. But if you think VAT is just paid by the end user, well that’s not certainly true. Actually, VAT is paid throughout the supply chain. For example, if a manufacturer buys raw materials for the production of some goods, then VAT is also charged on the raw materials. Now, when the goods are made, the manufacturer will charge VAT when selling them to retailers or wholesalers. But they have to submit the collected tax to HM Revenue & Customs. However, the tax paid by the business when getting the raw materials can be claimed back as it comes under the business expenses.
Similarly, businesses that create products like branding panels will also incur VAT at different stages of production. When these branding panels are sold to retailers or directly to consumers, VAT is added, and the tax is remitted to the government.

What is the Standard VAT Rate in the UK?

In the UK, the standard VAT is 20% which is charged on most of the goods and services. But it’s not for all the goods and services. There are some goods and services which come under reduced VAT. The reduced tax is 5% and applies to some set goods and services like electricity for domestic purposes.

But there’s one more category of VAT in the UK, the zero VAT category. So, what does a zero VAT-rated product or service mean? It means you don’t have to pay any VAT on such products or services. An example of zero-rated VAT is most of the food items.

What is Current Rate of VAT in UK for Printing?

Now, let’s come to printing, how much VAT is charged for printing in the UK? Well, it depends because while most of the printed items are charged at standard VAT rates which are 20% like economy hoarding panels, there are products which are zero-rated. What does zero rated VAT mean? These are the products or services with no tax at all like leaflets. Here’s a table of printing items that come under standard VAT and are rated.

Below is a comprehensive guide outlining the VAT rates for various printed products. Rates are according to UK tax regulations.

Content Disclaimer: The VAT rates mentioned are based on general guidelines and may vary depending on specific circumstances or updates to UK tax regulations. For the most accurate and detailed information, we recommend contacting us directly.

What Items Are Exempt From VAT?

While the above list contains the items which are either taxable or non-taxable, there are some printable items which are exempt from taxation or are exempt from the zero-rated category. But, what is the difference between zero-rated and exempt VAT? Being exempt basically means that in some conditions the printed product may not lie in the category in which it is usually put. For instance, if a printed product like picture card and stamp albums have text in them and the area to mount cards or stamps is 25% or less, then it will lie in the standard VAT category. Similarly, booklets which are zero-rated printing products lie under standard tax if they are produced to be used as a chargeable product like a diary.

Conclusion

Now that you know which printed products in the UK are taxable and which are not, it will help you plan your print-based marketing campaigns better. But some products are worth paying the VAT like our branding panels which come out to be so attractive that no one can take their eyes off them. So the business it brings to you compensates for the tax you paid. However, people often feel guilt for using printed marketing tools due to environmental reasons. But do you know that hoarding graphics can be environmentally friendly? If not, then click here.