Can I claim expenses for business-related courier or delivery services?

Understanding what “business-related courier or delivery services” means

Courier and delivery costs are a common part of running a business. Whether you’re shipping products to customers, sending contracts to a client, moving samples to a showroom, or returning faulty stock to a supplier, you may end up paying for courier or delivery services regularly. The good news is that, in many cases, these costs are legitimate business expenses and can be claimed for tax purposes. The key is understanding what qualifies, how to treat mixed-use deliveries, what evidence you should keep, and how different business structures and tax rules typically approach “wholly and exclusively” business spending.

At a high level, you can usually claim courier or delivery expenses when the cost is incurred for the purpose of your trade or business. “Courier” can include same-day couriers, parcel carriers, freight services, bike couriers, and specialist logistics. “Delivery services” can include local delivery drivers, on-demand delivery platforms, postal and parcel services, and even some forms of third-party fulfillment or dispatch services. These are all essentially costs of moving goods or documents from one place to another. If that movement is necessary for your business activity, it’s often deductible.

However, claiming an expense is never just about the label on the receipt. Tax authorities generally look at the underlying reason the business paid it. A courier invoice might be deductible if it was for sending customer orders. The same courier invoice might not be deductible if it was for delivering personal purchases to your home. The same invoice could be partly deductible if it covered both business and personal deliveries. Understanding the “why” behind each cost is the foundation for claiming it correctly.

The basic rule: business purpose and the “wholly and exclusively” test

Most tax systems have a guiding principle that deductible expenses must be incurred for business purposes. In many places, this is described as the cost being “wholly and exclusively” for business, or “ordinary and necessary” for the trade. The wording varies by jurisdiction, but the practical takeaway is similar: the expense needs to relate to earning business income, maintaining business operations, or fulfilling business obligations.

Courier and delivery services often pass this test because they can be essential to selling goods, providing services, meeting deadlines, and maintaining business relationships. For example, if your business sells physical products, the cost of sending them to customers is typically a normal operating expense. If your business provides professional services and you send documents, prototypes, or equipment to clients, those courier costs are usually part of doing business.

Where people get into trouble is with dual-purpose costs. If a delivery goes to your home and includes business and personal items, or if you “piggyback” a personal shipment onto a business dispatch to save money, the business deduction may need to be reduced to reflect only the business portion. And if the dominant purpose is personal, you may not be able to claim any of it.

Common deductible courier and delivery expenses

To make the idea more concrete, here are several common scenarios where courier or delivery costs are typically considered business-related and therefore claimable, assuming proper records are kept and the costs are reasonable.

Shipping products to customers

If you sell goods—online, by mail order, or through direct sales—the cost to ship products to customers is usually deductible. This includes domestic and international shipping, courier charges, tracked delivery, express options chosen to meet customer expectations, packaging surcharges applied by carriers, fuel surcharges, and fees for remote areas. It may also include the cost of returning goods where you cover return shipping as part of your customer service policy.

Sending business documents and contracts

Many businesses use couriers for urgent documents, signed contracts, visa paperwork, notarized forms, or compliance documents that require secure delivery. If the document relates to business activity—client onboarding, tender submissions, legal agreements, regulatory filings—the courier charges are typically claimable.

Delivering samples, prototypes, and marketing materials

Businesses often send samples to prospective clients, prototypes to manufacturers, or promotional materials to partners and events. Courier costs for these shipments can usually be claimed as a business expense when the purpose is marketing, product development, or sales.

Moving tools, equipment, or inventory between sites

If you operate across multiple locations—such as a workshop and a retail site, or a warehouse and an office—courier and delivery costs to move stock or equipment between sites are often deductible. The same is true for sending tools to a job site, particularly if you are a contractor or tradesperson.

Returns to suppliers and warranty shipments

If you return defective stock to a supplier, send items for repair, or ship products as part of a warranty process, the courier fees can generally be claimed if they arise from business operations. The expense exists because you are running the business and dealing with normal commercial issues.

Third-party fulfillment and dispatch services

Some businesses outsource storage, packing, and shipping to fulfillment providers. Charges that are essentially for delivery and courier services—shipping labels, carrier fees, dispatch fees—are commonly treated as operating costs. Some parts of the invoice may be for storage or handling rather than delivery, but they are still usually business expenses if they relate to fulfilling customer orders.

On-demand local delivery platforms

Restaurants, florists, retailers, and service businesses may use on-demand delivery platforms or independent couriers. If the deliveries are for customer orders or business errands (such as delivering an item to a customer or collecting supplies for a job), the fees are typically claimable. The key is documenting the business purpose and ensuring you are not claiming personal deliveries.

Situations that are partly deductible or need careful allocation

Not every courier or delivery cost is a clean “yes” or “no.” Mixed-use scenarios are common, especially for sole traders and small business owners who work from home. When an expense has both business and personal elements, you may need to apportion it—claiming only the business share and leaving the personal portion unclaimed.

Mixed shipments: business and personal items in one delivery

Suppose you order office supplies and personal household items in the same online order, and there is a single delivery charge. In that case, you normally shouldn’t claim the full delivery cost as a business expense. A fair approach is to split the delivery fee in proportion to the value of business items versus personal items, or based on some reasonable allocation method that you apply consistently. The goal is not to find a “perfect” method but to use a defensible one.

Deliveries to a home address

Receiving business deliveries at home does not automatically make them personal. Many small businesses operate from home, and it’s common for business items to be delivered there. The issue is not the address but the nature of the items. If the package contains inventory, office equipment, business stationery, or materials used solely for business, the delivery cost can still be deductible. However, you should be prepared to demonstrate the business purpose if asked, especially if the delivery description is vague or the supplier sells both business and consumer items.

Memberships, subscriptions, and bundled shipping benefits

Some businesses pay for membership services that include “free delivery” or shipping benefits. If the membership is used for both business and personal purchases, you may need to apportion the cost. If it is used solely for business procurement, it is more straightforward. The more your membership resembles a personal consumer membership, the more important it is to keep clear records showing business use.

Client gifts, hospitality items, and promotional deliveries

Courier costs to send gifts or promotional items to clients can be deductible if the underlying cost is a legitimate business expense. But client gifts and entertainment can be subject to special rules in many jurisdictions. Sometimes the gift cost is only partially deductible or not deductible at all, depending on the type of gift and local rules. Delivery costs may follow the same treatment as the gift itself. If you regularly send items to clients, keep notes explaining the purpose and recipients, and be mindful of any limits or restrictions that apply.

Costs that are usually not deductible

To claim courier or delivery expenses appropriately, it helps to be clear about what typically does not qualify. While rules vary, the following categories are commonly disallowed or restricted.

Purely personal deliveries

If you use a courier to deliver personal items—clothes, groceries, household goods, gifts to friends, personal online shopping—these costs are not business expenses even if you paid for them from a business account. Paying from a business account does not transform a personal cost into a business deduction.

Commuting-related deliveries

Costs tied to personal commuting are often treated as private. If you use delivery services to make your personal commute easier (for example, delivering personal items to your workplace), that typically remains personal. However, if the delivery is for work equipment needed for a job and you can show a direct business necessity, the position may be different. The more it looks like a personal convenience, the harder it is to justify as a business expense.

Capital items and delivery as part of acquisition

When you buy an asset that is used over multiple years—like machinery, computers, or specialized equipment—some tax systems treat associated delivery and installation costs as part of the asset’s cost rather than a simple day-to-day expense. That means you might not deduct the delivery cost immediately as an operating expense. Instead, it may be included in the asset’s capital value and deducted over time through depreciation or capital allowances. This distinction matters because it affects the timing of your tax relief.

In practical terms: shipping a one-off laptop you’ll use for years might need to be treated as part of the laptop’s cost, while shipping a box of inventory you’ll sell quickly is normally an ordinary expense. The same courier company might appear in both situations, but the tax treatment can differ based on what was shipped.

How to categorize courier and delivery expenses in your bookkeeping

Accurate categorization makes your accounts clearer and can reduce mistakes when you prepare tax returns. Many small businesses group these costs under “Shipping and delivery,” “Postage and courier,” or “Distribution.” If you sell goods, you might also track delivery expenses as part of “Cost of goods sold” or separately as “Fulfillment costs.” The right approach depends on how you manage margins and pricing.

Here are a few common ways businesses categorize delivery-related costs:

Postage and courier: For letters, document couriers, postal services, and ad-hoc shipments.

Shipping and fulfillment: For customer order dispatch, carrier labels, and packing/shipping costs.

Freight and logistics: For larger shipments, pallet delivery, import/export freight, and warehousing-linked transport.

Delivery driver and local transport: For local deliveries, gig-economy delivery platforms, and contracted drivers.

The key is consistency. If you categorize costs the same way month after month, you’ll have better reporting and fewer headaches during tax season. If your software allows it, you can also use tracking categories, tags, or project codes so you can see which clients, product lines, or projects are driving delivery expenses.

Evidence and records: what you should keep

Being able to claim the expense is one thing; being able to support the claim is another. In most cases, you should keep documentation that shows:

Who you paid: The courier company or delivery platform.

When you paid: The date of the transaction.

How much you paid: Total cost, including any taxes, surcharges, and tips where relevant.

What it was for: Shipment reference, tracking number, recipient, delivery address, and a description of the goods/documents where possible.

Receipts and invoices are ideal, but additional context can be helpful. For example, a simple note in your bookkeeping software—“Courier to Client A: signed contract” or “Shipment to customer order #1042”—can make it much easier to justify the expense later. If you ship frequently, keep a record that links shipping labels or tracking numbers to sales invoices or job numbers. If you use an online shipping portal, download monthly statements and keep them with your accounting records.

If you ever need to apportion a delivery fee between business and personal use, keep evidence of your calculation method and make it consistent. A tax authority is generally more comfortable with a reasonable, repeatable method than with an approach that looks random or opportunistic.

Domestic vs international shipping: does it change anything?

The business rationale for a courier expense is usually the same whether the shipment is domestic or international. If the shipment is for business purposes, it is often deductible. However, international shipments can bring additional charges, such as customs clearance fees, duties, import taxes, and broker fees. The tax treatment of these extra charges can vary depending on what you are shipping and whether the charges are recoverable or treated as part of the cost of goods.

For example, if you import stock for resale, duties and import charges might be treated as part of your inventory cost. If you ship products to customers overseas, you might face export documentation fees. These are still generally business-related, but where you record them in your accounts may differ depending on local tax rules and whether the charges are linked to a sale, an import, or a capital purchase.

Charging customers for delivery: what happens to the expense?

Many businesses pass delivery costs on to customers, either as a separate shipping line on the invoice or built into the product price. The fact that you charge the customer doesn’t automatically remove your right to deduct the underlying cost. Usually, you will treat:

The shipping charge to the customer as part of your business income (revenue).

The courier cost you pay as an expense.

Your profit is the difference between what you charge and what you pay. Some businesses choose to subsidize shipping to remain competitive; others add a markup to cover packaging and admin time. Both approaches are common. The important thing is to record both sides properly so you can see whether shipping is a profit center, a break-even service, or a cost you’re absorbing to drive sales.

Special cases for different business types

Courier and delivery expenses touch many industries, but a few common business models have unique considerations.

E-commerce and retail

E-commerce businesses often face high volumes of small shipments. In these cases, tracking delivery costs closely can improve pricing decisions. If you offer “free shipping,” you’re still paying the carrier, so you should treat those costs as expenses and consider them when setting prices and margins. You might also have packaging costs, label fees, and returns shipping; these are often treated alongside courier costs.

Consultants and professional services

Service businesses might not ship products often, but may courier documents, laptops, specialist equipment, or materials to clients. Because these shipments can be more sporadic, it’s useful to add notes to each courier expense identifying the client and purpose. That reduces ambiguity later, especially if the invoice description from the courier company is generic.

Construction, trades, and on-site services

Tradespeople might have materials delivered to job sites or use couriers to transport tools. These can usually be business expenses, especially when the delivery is directly tied to a specific project. If you bill the client for delivery costs, ensure your invoices and job records show that link. If you deliver tools to yourself for convenience, keep the distinction between necessary job logistics and personal convenience clear.

Food, hospitality, and local delivery

Restaurants and local businesses using delivery platforms may have platform fees, commission charges, and courier fees bundled together. Some parts of the costs may be categorized as marketing or platform service fees rather than pure delivery. From a tax perspective, they may all still be business expenses, but separating them can give you better insight into profitability and help you compare delivery channels.

VAT, sales tax, and other transaction taxes: a practical overview

If your business is registered for VAT or a similar consumption tax, the tax handling of courier services may matter. In many systems, you can recover input tax on business expenses if the invoice meets requirements and the cost relates to taxable business activity. But there are often exceptions, partial exemptions, and specific invoicing rules. The same courier bill can be straightforward in one situation and more complex in another.

From a practical standpoint, you’ll want to ensure that courier invoices are issued to the business name (where possible), show any applicable tax clearly, and are stored in a way that makes them easy to retrieve. If you use international couriers, you might see zero-rated services, reverse-charge mechanisms, or additional import documentation. These topics can become technical quickly, so if your business ships internationally or your tax position is complex, it’s often worth getting advice tailored to your circumstances.

Claiming courier expenses when you use personal funds or a personal card

It’s common for business owners to pay for small expenses from personal funds—especially in the early days of a business, during travel, or when a courier needs payment quickly. In many cases, the business can still claim the expense as long as it is genuinely business-related and you keep evidence. Typically, you would record the expense in the business accounts and treat it as a reimbursement owed to you (or as an owner’s contribution, depending on how you manage finances).

The important point is to keep the receipt and document the business purpose. If you routinely pay business shipping costs personally, consider whether a separate business card or account would make recordkeeping easier and reduce the risk of mixing personal and business spending.

What about tips, surcharges, and “convenience” fees?

Modern delivery services sometimes include tips for drivers, service fees, peak-time surcharges, re-delivery fees, or cancellation charges. Whether these are deductible depends on why they were incurred and whether they relate to business activity.

If you tip a courier or driver as part of completing a business delivery, the tip may be treated as part of the delivery cost. If a surcharge is charged because you needed a delivery during peak hours to meet a client deadline, it can still be business-related. If a re-delivery fee arises because the business address was closed unexpectedly or the recipient wasn’t available, it may still be a business expense—though repeated issues could look careless. If a cancellation fee arises because you made an error or changed your mind, it can still be linked to business operations, but you should keep notes explaining the circumstances.

In short, these extra charges are often claimable when they stem from business needs. Keep the evidence and add context in your records.

Home-based businesses: separating personal and business deliveries

Home-based business owners face a particular challenge: deliveries often arrive at the same place as personal packages. That doesn’t prevent you from claiming legitimate business deliveries, but it does increase the importance of clean recordkeeping. Here are practical steps that can help:

Use a business name on orders: Where possible, place orders under the business name so invoices clearly indicate the business recipient.

Keep digital invoices: Store courier invoices and order confirmations in a dedicated folder or accounting system, ideally with searchable references.

Note the purpose: Add a short note such as “inventory for resale,” “client sample kit,” or “replacement printer toner.”

Avoid combined personal/business orders: If you can, separate personal purchases from business purchases. It makes delivery fees easier to allocate and reduces audit risk.

Be consistent with apportionment: When mixed orders happen, apply a clear method and stick to it.

Reasonableness and commercial reality

Even when a courier cost is connected to business, tax authorities may still look at whether the expense is reasonable and reflects commercial reality. An occasional urgent courier to meet a deadline is normal. Using expensive same-day couriers for routine tasks when cheaper options exist might raise questions—especially if the spending appears excessive relative to business size or revenue.

This doesn’t mean you must always choose the cheapest option. Businesses can pay for speed, reliability, and security. But your records should make it clear why an expense was incurred. If you consistently pay premium rates, you should be able to explain the business need—tight turnaround times, high-value items, temperature-controlled delivery, or contractual requirements.

Common mistakes and how to avoid them

Courier and delivery expenses are relatively simple, but a few recurring mistakes cause problems:

Claiming personal deliveries: The fastest way to create trouble is to claim personal shipping costs as business expenses. Keep the boundary clear.

Not keeping receipts or invoices: Bank statements alone often don’t show enough detail. Keep proper documentation and shipment references.

Failing to apportion mixed-use deliveries: If you have combined personal and business items, record an allocation and claim only the business portion.

Misclassifying capital shipping costs: Delivery costs for long-term assets may need different treatment than everyday operating costs. Treat major equipment shipping carefully.

Not linking shipments to sales or jobs: For high shipping volumes, missing links between shipments and revenue can create confusion and weaken your position if questioned.

Practical checklist: can you claim this courier or delivery expense?

Use the following questions as a practical test before claiming a courier or delivery cost:

1) What was delivered? Inventory, business documents, supplies, tools, equipment, or something personal?

2) Why was it delivered? Customer fulfillment, client service, compliance, business operations, or personal convenience?

3) Who benefited? The business (earning income, meeting obligations) or you personally?

4) Is there any personal element? If yes, can you reasonably split the cost and claim only the business portion?

5) Do you have evidence? Invoice/receipt, tracking number, order reference, recipient details, and a note describing the business purpose.

6) Is it a normal operating cost or part of buying a long-term asset? If it’s linked to acquiring equipment, consider whether it should be treated as part of the asset cost.

Examples to make it real

Sometimes examples are the easiest way to understand the boundary between claimable and non-claimable expenses. Here are a few realistic scenarios:

Example 1: Shipping customer orders

You run an online shop selling handmade skincare products. You pay a parcel carrier weekly to ship customer orders. These courier fees are directly related to your sales and are typically deductible. If you charge customers for shipping, that charge is income; the carrier cost is an expense.

Example 2: Same-day courier for a client deadline

You are a graphic designer and need to send printed proofs to a client for a same-day meeting. You pay for a bike courier to deliver them across town. This is a business cost incurred to serve the client and is typically deductible, especially if you record which job it related to.

Example 3: Mixed online order with one delivery fee

You buy printer ink and paper for your business and also buy personal toiletries from the same retailer with one delivery charge. The delivery fee should be split in a reasonable way. You can claim the portion that relates to the business supplies, not the portion relating to personal items.

Example 4: Shipping a new laptop for the business

You purchase a laptop that will be used for several years in your business. The delivery cost might be treated as part of the laptop’s total cost, depending on local rules. You may still get tax relief, but it might come through depreciation/capital allowances rather than an immediate expense deduction.

Example 5: Personal package sent using the business account

You use the company courier account to send a birthday gift to a family member because it’s convenient. Even if the business paid, this is a personal expense and should not be claimed. The clean approach is to reimburse the business and record it properly.

Final thoughts: yes, often you can, but claim it correctly

So, can you claim expenses for business-related courier or delivery services? In many cases, yes. If the delivery cost is incurred for business purposes—shipping products to customers, sending documents, delivering samples, moving inventory, handling returns—it’s usually a valid business expense. The most important factors are the purpose of the shipment and the quality of your records.

If there’s any personal element, claim only the business portion using a reasonable allocation method. If the delivery relates to a capital purchase, consider whether it should be included in the asset cost rather than treated as a day-to-day expense. Keep invoices, tracking references, and clear notes linking shipments to sales, clients, or projects.

When you build the habit of documenting courier and delivery costs properly, claiming them becomes straightforward. Better still, you’ll gain clearer insight into the true cost of serving customers and delivering your work—information that can help you price more confidently, improve margins, and run a smoother operation overall.