VAT and Your Parcelly Commission Payments
We’re updating how VAT is handled on your monthly Parcelly commission. From 6 October 2026, VAT will be added only where we have verified your business’s VAT details and VAT is chargeable under the applicable rules.
Below you’ll find answers to the most common questions, including how to provide your VAT details, when VAT will be added and what happens if your business is not VAT-registered.
PARCELLY PARTNER SUPPORT
Commission Payments and VAT
Answers for Parcelly partner stores in the United Kingdom.
What’s changing?
1. What’s changing with my commission payments?
From 6 October 2026, Parcelly will add VAT to commission payments only where we hold a verified VAT number for your business and VAT is chargeable under the applicable rules.
Where these conditions are met, your payment will include your net commission plus VAT. If we do not hold a verified VAT number, your payment will be limited to the net commission shown in your monthly Commission Report.
2. When does this start?
The updated process applies to all Commission Reports issued on or after 6 October 2026.
3. Why is Parcelly making this change?
We are updating our process to ensure VAT is added only for businesses whose VAT status has been verified.
This helps ensure that Commission Reports and payments are processed consistently and reflect the information held for the business contracted with Parcelly.
4. Has my commission rate changed?
No. Your commission rate and the way your net commission is calculated remain unchanged. The only potential difference is whether VAT is added to your net commission.
5. Does this affect every UK store?
Yes. The updated process applies to every Parcelly partner store in the United Kingdom. The amount paid will depend on the store’s verified VAT status and the applicable VAT rules.
Your payment
6. Why is my latest payment lower than usual?
If we do not hold a verified VAT number for your business, your payment will be limited to your net commission.
Your commission rate has not changed. Any difference compared with an earlier payment may relate to VAT that is no longer being added. Please check your Commission Report or contact us if you believe the payment is incorrect.
7. What’s the difference between net and gross commission?
Net commission is the commission you earn for handling parcels, excluding VAT. Gross commission is the net commission plus any VAT that is chargeable.
8. How can I tell whether Parcelly has my VAT number on file?
Check your monthly Commission Report. If we do not hold a verified VAT number, the report will show your net commission and confirm that payment is being made without VAT.
If you believe Parcelly should already have your VAT number, please contact us.
9. My business isn’t VAT-registered. Do I need to do anything?
No. Your commission will be paid without VAT, and you do not need to send us a VAT number.
You remain responsible for monitoring your VAT registration obligations and notifying Parcelly if your VAT status changes.
10. I’m not sure whether my business is VAT-registered. What should I do?
Check your VAT registration certificate or correspondence from HMRC. You can also ask your accountant or tax adviser.
Parcelly cannot advise whether your business is required to register for VAT.
Giving us your VAT number
11. How do I send you my VAT number?
Email your details to networkpartner@parcelly.com.
12. What information do you need from me?
Please provide:
- Your store name
- Your store postcode
- The full legal name of your business
- Your UK VAT number
- Any supporting VAT registration document we request
The business details should match the business named on your Parcelly agreement.
13. How do you check my VAT number?
We check UK VAT numbers using HMRC’s official VAT number verification service. If the service does not provide all the information required, we may ask for a VAT registration certificate or other supporting documents.
14. Why does my VAT number need to relate to the business on my Parcelly agreement?
Commission is paid to the business contracted with Parcelly. The VAT number must therefore relate to that business.
If your business uses a trading name, belongs to a VAT group or has another arrangement that explains a difference in the names, please send us the relevant supporting information.
15. How long does verification take?
We normally respond within two working days after receiving all the required information. Verification may take longer if information is missing, the details do not match or additional documents are required.
16. When will VAT start appearing on my payments?
Where VAT is chargeable, it will normally be added to the first Commission Report processed after your VAT number has been verified and your Parcelly account has been updated.
Depending on the monthly commission-processing cut-off date, the change may appear on the following Commission Report.
Earlier payments
17. Will VAT automatically be added to earlier payments after my VAT number has been verified?
No. Providing a VAT number does not automatically result in earlier Commission Reports or payments being adjusted.
If your business was VAT-registered during an earlier commission period, please send us evidence showing the effective date of registration. We will review the relevant period and determine whether an adjustment is required and can be supported by the necessary tax documentation.
18. I used to be VAT-registered but I’m not registered anymore. What should I do?
Please provide the start and end dates of your VAT registration, together with supporting documents.
We will review any relevant commission periods individually. VAT will not be added to commission relating to periods after your VAT registration ended.
19. My business isn’t VAT-registered, but payments before 6 October appeared to include VAT. What should I do?
You do not need to make a repayment unless Parcelly contacts you with details of a required correction.
The updated process applies from 6 October 2026. Parcelly may review earlier payments and will contact you if any action is required.
If something doesn’t match
20. My VAT number couldn’t be verified. What happens now?
We will contact you to explain what could not be confirmed and what additional information or documents may be required.
Until your VAT number has been verified, your Commission Reports and payments will show net commission only. If a later review shows that an adjustment is required, we will update the relevant payment or Commission Report as appropriate.
21. My VAT number is registered under a different name from the one on my Parcelly agreement. What should I do?
Please contact us and explain the difference. This may result from a trading name, VAT group, change of legal entity or change in ownership.
We will review the information and let you know whether your Parcelly account or agreement needs to be updated.
22. My store has changed ownership. What do I need to do?
Please tell us as soon as possible. We may need to update or replace the Parcelly agreement and verify the new owner’s business, bank and VAT details before further commission payments are processed.
The previous owner’s VAT number cannot automatically be transferred to the new business.
23. My VAT details have changed, or I’m no longer VAT-registered. Do I need to tell you?
Yes. Please contact us immediately and provide the effective date of the change. This allows us to apply the correct VAT treatment to future Commission Reports and payments.
Help
24. Who can I contact about my Commission Report?
Parcelly UK Partner Support
