Royal Mail VAT On Postage

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Information on VAT and Postal Services

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

The majority of Royal Mail’s customers will not be affected by this change. Most services will remain exempt from VAT, in particular, First and Second Class stamped and franked mail and standard parcels. You won’t pay VAT when you buy stamps.

Royal Mail will write to account customers directly affected by these changes.

Prices

Royal Mail is not increasing the prices of any UK services on 31st January 2011; and will only apply VAT to existing prices for the services affected.

Further advice

Many businesses can recover their VAT, but some cannot. For professional advice we suggest customers contact their Finance department, Accountant or Tax Advisor. Royal Mail cannot provide tax advice.

International contract mail

From 31st January 2011 international contract services to EU countries will be liable to VAT. You won’t see the names of all these services in the lists on the website at http://www.royalmail.com/vat" onclick="window.open(this.href);return false; because Royal Mail is currently improving and simplifying its international contract range. More details will be available in December.

Franked mail

Franking customers will not be able to buy affected products using a standard franking machine from 31st January 2011. They will still be available on a “smart” franking machine which can handle VAT. Customers can speak to their franking supplier to find out more.

Online postage

Customers will not be able to buy affected services on SmartStamp® and Online Postage for a while. They can still buy them at Post Office® branches and on account

These are some of the services Royal Mail will charge VAT on:

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
mailmedia

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

These are some of the services that remain exempt from VAT

UK Services
First and Second 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

[POSTMAN]

Ok,pre competition and bowing to the EU no VAT,cheaper postal service for all,po all that now VAT an EU interference and a more expensive and worse service for all.