VAT Changes 2011

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Information on VAT and postal services: (Updated 30 Oct 2010)


The Government has announced that VAT at the standard rate will be applied to certain postal services with effect from 31st January 2011.

The majority of Royal Mail’s customers will be unaffected by this change. Most Royal Mail services will remain exempt from VAT, in particular, First and Second class stamped and meter (franked) mail and Standard Parcels. They are part of Royal Mail’s Universal Service Obligation.

We are not increasing the prices of any of our UK services on 31st January 2011; we are only applying VAT to our existing prices for the services affected.

A summary list of Royal Mail products and services which will be liable to VAT from 31st January 2011 can be found further down this page. The full list of products liable to VAT which also provides further information about prices can be found in the list of products (ftp://ftp.royalmail.com/Downloads/publi ... cation.pdf" onclick="window.open(this.href);return false; )document.

We understand that many of our business customers can recover their VAT and that some cannot. We can advise on the mail services that best meet your needs, but Royal Mail cannot provide tax advice. For professional advice we suggest that you contact your Finance department, Accountant or Tax Advisor.

We’re also taking the opportunity to streamline, improve and simplify our International Contract Services portfolio in December. From 31st January 2011 contract mail services to EU countries will attract VAT.

Franking Services customers will not be able to buy the affected products using a standard meter from January 2011. They will still be available if you upgrade to a smart meter. We suggest you speak to your franking service meter supplier to find out more.

Smart Stamp and Online Postage products subject to VAT will be suspended temporarily. The services will still be available at Post Office® branches and on account.

Royal Mail will be contacting customers directly affected by these changes and provide guidance on what they may need to consider and do to successfully manage the implementation of VAT on their postal services.

The main products that will become subject to VAT

Express and Tracked 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


International Services (VAT will only be added to EU destinations)
International Contract Services
International Airsure
International Admail and Admail Packets
International Redirections


Advertising, Catalogues and Magazine Services
Big Book
Royal Mail Heavyweight
Mail Media


Unaddressed Mail
Door to Door


Receiving and Managing Mail Services
Keepsafe
Timed Delivery
Early Extraction
Early Collect
Selectapost


Other Services
Business Mail Secure
Admail
Local Collect
Callers Services
Rural Deliveries
Rural Carriage of Goods


Contract Services
Presorted Delivery
Mailroom Management
Mailroom Consulting Services
Royal Mail Relay


If you do not see a particular Royal Mail service listed please check the full list of products (opens in a new window) liable to VAT

Products that will remain exempt from VAT include
Inland Services
1st and 2nd Class (Stamped, Franked and PPI)
Special Delivery Next Day (Stamped and Franked)
Standard Parcels
Recorded Signed For
Cleanmail, Cleanmail Plus and Cleanmail Advance
Mailsort (70, 120, 700 and 1400)
Walksort
Presstream
Sustainable Mail


International Services
International Airmail
International Surface Mail
All HM Forces Mail (BFPO)
If you have any questions regarding how the application if VAT affects your business should contact your Account Manager or call Customer Services on 08456 113 421, Monday to Friday 08:00 to 18:00. Calls may be recorded, monitored and used for training purposes.