§ Lord Spens
asked Her Majesty's Government:
Whether, and in what circumstances, VAT is payable on the sale and purchase of postage stamps, covers and other postal collectables (not of current issue).
§ Lord Henley
VAT is not chargeable on unused stamps which are valid for postal use in the UK or the Isle of Man provided that the price of the stamp does not exceed its face value; if it does, VAT is chargeable on the excess.
Other stamps, covers and postal collectables are subject to VAT at the standard rate either on the full selling price or, if sold under the optional margin scheme, on the difference between the purchase and selling price.