Source: All England Reporter
Publisher Citation: [2002] All ER (D) 365 (Jul)
Neutral Citation: [2002] UKHL 33
Court: House of Lords

Lord Slynn of Hadley, Lord Mackay of Clashfern, Lord Hobhouse of Woodborough, Lord Millett and Lord Scott of Foscote

Representation Nicholas Paines QC and Peter Mantle (instructed by the Solicitor for Customs and Excise) for the Commissioners.
  Roderick Cordara QC and Perdita Cargill-Thompson (instructed by Ernst & Young) for the taxpayer.
Judgment Dates: 25 July 2002


Value added tax - Supply of goods or services - Supply for a consideration - Consideration - Postage charges - Delivery of goods by post - Bulk postage agreement between supplier and Post Office - Customer paying supplier separate postage charge - Whether part of consideration for separate supply of arranging delivery - Whether postage charge excluded from taxable amount - Whether supplier acting as agent for customer - Council Directive (EEC) 77/388, art 11A(3)(c).

The Case

Sums for postage paid by customers to the taxpayer for delivery of goods by mail were part of the receipts by the taxpayer as apart of its turnover and attracted value added tax as taxable supplies, even though the agreement between the taxpayer and the customer stated that the taxpayer would merely arrange for the delivery of the goods by Parcelforce.

Practice Areas

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