VAT and the method of delivery
You have a number of different options for delivering products to customers. These include:
- Using Royal Mail postal services
- Using Royal Mail parcel services
- Using independent parcel or courier services.
Royal Mail postal services
If you use Royal Mail postal services, you do not charge VAT on postage, even though you may charge customers for the cost of postage. This is because Royal Mail postal services are considered ‘universal postage services’ and are exempt from VAT.
While you cannot charge customers VAT on this method of delivery, you cannot claim back any VAT on the cost of the Royal Mail service.
found this online a while ago from accountsandlegal website regards vat and postage
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