§ Lord Spensasked Her Majesty's Government:
What duties are payable on the importation of postage stamps, covers and other postal collectables (not of current issue) from countries
- (a) outside the European Union and
- (b) inside the European Union.
§ The Parliamentary Under-Secretary of State, Ministry of Defence (Lord Henley)Under the European Community Agreements all goods imported into the Community are, in principle, subject to Customs duty and VAT. The agreements do allow relief from payment of customs duty on importation for postage stamps, covers, and other postal collectables. However the standard rate of VAT applies to these items unless they qualify for relief as antiques or collectors' pieces of historical interest. From 1 June 1995 those items which are currently entitled to relief from VAT will instead be taxed at importation into the United Kingdom on a reduced value, giving an effective VAT rate of 2.5 per cent.
No Customs duties are chargeable in respect of goods in free circulation which are traded between member states. When postage stamps, covers and postal collectables are supplied by a trader registered for VAT in another member state to a trader registered for VAT in the United Kingdom, VAT need not be charged by the EC supplier on despatch of the goods. VAT is due from the United Kingdom trader on acquisition of the goods in the United Kingdom. The United Kingdom trader would account for any VAT due, at the rate applicable to the goods, on his normal VAT return and would be able to claim this VAT as input tax on the same return, subject to the normal rules.
When postage stamps, covers and postal collectables are supplied by a VAT-registered EC supplier to a person not registered for VAT in the United Kingdom, VAT would be charged by the supplier in the country of despatch of the goods. No further VAT would be due on the arrival of the goods in the United Kingdom.