Nothing I have seen on the news so this has gone under the radar:
Information on VAT and postal services
Changes to VAT law and the way in which our services are regulated have affected the VAT status of a number of our products. A limited range of our services became subject to VAT through 2011, and this will extend to all bulk mail services from April 2012. A summary of the main services affected is shown later on this page.
Universal services (USO) such as 1st and 2nd Class stamps will continue to be VAT exempt from April 2012.
For more information on all Royal Mail prices visit: www.royalmail.com/prices2011.
The following table shows a full list of services that are changing their VAT status.
Service VAT change Effective from Cleanmail® Service becomes liable to VAT 2 April 2012 Cleanmail® Plus Service becomes liable to VAT 2 April 2012 Cleanmail® Advance Service becomes liable to VAT 2 April 2012 Mailsort® (70, 120, 700 and 1400) Service becomes liable to VAT 2 April 2012 Walksort® Service becomes liable to VAT 2 April 2012 Presstream® Service becomes liable to VAT 2 April 2012 Sustainable® Mail Service becomes liable to VAT 2 April 2012 Packetpost Service becomes liable to VAT 2 April 2012 Packetsort Service becomes liable to VAT 2 April 2012 Packetsort Plus Service becomes liable to VAT 2 April 2012 Packetpost Returns Service becomes liable to VAT 2 April 2012 PO Box Services Service becomes liable to VAT 2 April 2012 Advertising Mail (70,120, and 1400) Service becomes liable to VAT 2 April 2012 Automated Standard Tariff Large Letter Service becomes liable to VAT 2 April 2012 Response Services (inc. Licence fees) Service becomes liable to VAT 2 April 2012 First and Second Class Standard Tariff Account mail Service becomes liable to VAT 2 April 2012 Redirect Diversion Service becomes liable to VAT 2 April 2012 Ministerial Pouch Services Service becomes liable to VAT 2 April 2012 Do not redirect Service becomes liable to VAT 2 April 2012
Further Information
Many business customers can reclaim VAT. If your business is registered for VAT, and sells taxable goods or services, then as a general rule, you will be able to recover the VAT in the normal way on your VAT return.
For professional advice, talk to your Finance department, Accountant or Tax Advisor. You can also find more information on VAT at the HMRC website: www.hmrc.gov.uk/vat (new window).
Summary
Royal Mail services that are or will become liable to VAT:
Express and Packet services
- Special Delivery™ 9.00a.m. Stamp, Franking and Account
- Special Delivery™ Next Day Account
- Royal Mail Tracked® and Tracked™ Next Day
- Royal Mail Sameday®
- Packetpost
- Packetsort
- Packetsort Plus
- Packetpost Returns
- Recorded Signed For will also become liable to VAT if purchased as an add-on to a standard rated service. In all other circumstances it will remain VAT exempt.
UK Services
- Cleanmail®, Cleanmail® Plus and Cleanmail® Advance
- Automated Standard Tariff Large Letter
- First and Second Class Standard Tariff Account mail
Marketing Services
- Big Book
- Royal Mail Heavyweight
- Mailmedia®
- Door to Door
Business Mail and Publishing
- Mailsort® (70, 120, 700 and 1400)
- Walksort®
- Pressstream®
- Sustainable® Mail
- Advertising Mail (70,120, and 1400)
- Response Services (inc. Licence fees)
International Services (VAT will only be added to EU destinations)
- International Contract Services
- International Airsure®
- International Admail and Admail Packets
- International Redirections
Inbound Mail Services
- Timed Delivery
- Early Extraction™
- Early Collect™
- Selectapost™
- Local Collect
Other Services
- Business Mail Secure
- Admail
- Callers Services
- Rural Deliveries
- Rural Carriage of Goods
- PO Box Services
- Redirect Diversion
- Ministerial Pouch services
- Do not redirect
Contract Services
- Pre-Sorted Delivery
- Mailroom Management
- Mailroom Consulting Services
- Royal Mail Relay®
Some services that remain exempt from VAT, in addition to free services
UK Services
- First and Second Class (Stamped, Franked)
- Special Delivery™ Next Day (Stamped and Franked)
- Standard parcels
- Recorded Signed For™ (if purchased with an exempt service)
- Keepsafe™
International Services
- International Airmail
- International Surface Mail
- International Signed For™
- All HM Forces Mail (BFPO)
Source
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