How etrinsic can save you money by managing VAT mitigation on printed material

With VAT at 20%, management of this tax is even more crucial, particularly for those organisations who cannot reclaim it.

VAT regulation on printed material can be something of a minefield. Some items of printed output - such as the printing itself - are zero-rated, while others - like the production of artwork - attract the standard rate.

Print management specialist etrinsic has widespread experience of managing VAT and currently helps mitigate over £1,000,000 of VAT on an annual basis for various clients.

“The issue of VAT mitigation (in other words reducing the effects of the tax) exists because some businesses - primarily financial services companies and charitable organisations - are unable to claim it back, ” says Jon Saunders of etrinsic. “It is therefore important that purchases include as many zero-rated items as possible. etrinsic works within HMRC (Revenue and Customs) guidelines to minimise VAT liability.”

Much print and direct mail can be zero-rated depending on the format and purpose of the item. However, just a small change in the nature of the piece can turn it from a zero-rated item into a rated item. 

Why is consolidation important?

If you have zero-rated items, the rulings allow for other costs to be included - for example, the creative and data supply for mailing packs. To achieve zero-ratings for third party items, they must be billed on a ‘single line’ invoice from one source.

“etrinsic can act as the ‘hub’ that manages this process,” says Jon Saunders. “We receive invoices from third parties which we pay and then charge these on to the client as a single line - something that can create major savings.”

etrinsic is able to advise on VAT regulations and provide advice to:

• Ensure that as much material as possible is zero-rated

• Manage the rulings from HM Revenue and Customs

• Mitigate third party VAT

• Manage the mitigation process to ensure time burden is minimal

• Act as the central hub for invoice consolidation

If you would like a review of your printed material in terms of managing VAT, please contact Sheila Robinson at etrinsic on 07977 007193 or email s.robinson@etrinsic.co.uk.