VAT Changes 2011

[TrueBlueTerrier]

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nformation on the VAT changes

As part of the budget on Wednesday 24th March 2010, the Government announced plans to introduce VAT on some of Royal Mail’s products and services from Monday 31st January 2011. This follows a legal challenge to the VAT exempt status of our services and a ruling by the European Court of Justice on the services that can remain VAT exempt.

The overwhelming majority of Royal Mail’s customers will be unaffected by the Government’s proposed changes in VAT announced today, and First and Second Class stamped and meter (franked) mail, Standard parcels and the large majority of Royal Mail’s other services will continue to be exempt from VAT.

Below are a list of the services that remain exempt and a list of the services that will be subject to VAT. These lists are not exhaustive.

Products that will remain exempt

Inland services
1st and 2nd Class Stamped Mail
1st and 2nd Class Franked Mail
1st and 2nd Class PPI Mail
Special Delivery Next Day Stamps and Franking
Standard Parcels
Recorded Signed For
Redirections
1st and 2nd Class Cleanmail, Cleanmail plus and Cleanmail Advance
1st and 2nd Class Packetpost, Packetsort and Packetpost Returns
1st, 2nd and 3rd Class Mailsort 120, 700 and 1400
1st and 2nd Class Response services
1st and 2nd Class Walksort
1st and 2nd Class Presstream
Sustainable Mail

International services
International Airmail
International Surface Mail
All HM Forces Mail (BFPO)

Access services
Access 1400, 700, 120 OCR and 120 CBC
Access 120 Letter, 120 Large Letter and 120 Packet
Access Walksort

Products that will become subject to VAT

Express and Tracked services
Special Delivery 9.00am Stamp, Franking and Account
Special Delivery Next Day Account
Royal Mail Tracked
Royal Mail Sameday

Catalogues and Magazine services
Big Book
Royal Mail Heavyweight

International services (excluding items sent to non-EU destinations which will remain VAT exempt)
International Redirections
International No Sort
International Format Sort
International Unsorted
International Destination Sort
International Bulk Mail
International Airsure
International Admail and Admail Packets

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 it is because we are still assessing which services will become liable to VAT.

Please visit this page for further updates to the lists. Alternatively please contact your account manager.

[Lounge Lizard]

Products that will become subject to VAT

Express and Tracked services
Special Delivery 9.00am Stamp, Franking and Account
Special Delivery Next Day Account
Royal Mail Tracked
Royal Mail Sameday
Catalogues and Magazine services
Big Book
Royal Mail Heavyweight
International services (excluding items sent to non-EU destinations which will remain VAT exempt)
International Redirections
International No Sort
International Format Sort
International Unsorted
International Destination Sort
International Bulk Mail
International Airsure
International Admail and Admail Packets

Unaddressed Mail
Door to Door


That's a long list, the last one here perhaps being most significant.

[POSTMAN]

I am traveling to France and Italy. My final flight back to the States is from Milan, Italy with a transfer in London back to SFO. Where do I turn in my VAT forms? In Milan? or in London?

Eh?

[fishtank]

I am traveling to France and Italy. My final flight back to the States is from Milan, Italy with a transfer in London back to SFO. Where do I turn in my VAT forms? In Milan? or in London?

Eh?

Lost.......HM Revenue & Customschat forum first door on the left.

[subbie]

Did the VAT man include those dreadful internet stamps in this change?

Subbie

[not me]

I am traveling to France and Italy. My final flight back to the States is from Milan, Italy with a transfer in London back to SFO. Where do I turn in my VAT forms? In Milan? or in London?

Eh?

c'mon Postman
look at the SPAM sig

[POSTMAN]

I am traveling to France and Italy. My final flight back to the States is from Milan, Italy with a transfer in London back to SFO. Where do I turn in my VAT forms? In Milan? or in London?

Eh?

c'mon Postman
look at the SPAM sig

Fecker! the twat put that in later,gone now anyway.Cheers

[DGP1]

I am traveling to France and Italy. My final flight back to the States is from Milan, Italy with a transfer in London back to SFO. Where do I turn in my VAT forms? In Milan? or in London?

Eh?

c'mon Postman
look at the SPAM sig

Fecker! the twat put that in later,gone now anyway.Cheers

What's he doing with my preferred name

[Patrick Clifton]

Products that will become subject to VAT

Express and Tracked services
Special Delivery 9.00am Stamp, Franking and Account
Special Delivery Next Day Account
Royal Mail Tracked
Royal Mail Sameday
Catalogues and Magazine services
Big Book
Royal Mail Heavyweight
International services (excluding items sent to non-EU destinations which will remain VAT exempt)
International Redirections
International No Sort
International Format Sort
International Unsorted
International Destination Sort
International Bulk Mail
International Airsure
International Admail and Admail Packets

Unaddressed Mail
Door to Door


That's a long list, the last one here perhaps being most significant.

So not only is Royal Mail screwing every postie with the cessation of the D2D payment, they are going to give themselves a nice little 'pay rise' for the service too!

[TrueBlueTerrier]

So not only is Royal Mail screwing every postie with the cessation of the D2D payment, they are going to give themselves a nice little 'pay rise' for the service too!

No - Vat goes to the Taxman and therefore Government. IIRC it was the EU that removed our Vat exempt status.

As much as we would like to blame RM for everything, sometimes the blame lays elsewhere.

[Patrick Clifton]

So not only is Royal Mail screwing every postie with the cessation of the D2D payment, they are going to give themselves a nice little 'pay rise' for the service too!

No - Vat goes to the Taxman and therefore Government. IIRC it was the EU that removed our Vat exempt status.

As much as we would like to blame RM for everything, sometimes the blame lays elsewhere.

But im sure that RM will take the oppertunity to add a few more pennies onto it

[TrueBlueTerrier]

So not only is Royal Mail screwing every postie with the cessation of the D2D payment, they are going to give themselves a nice little 'pay rise' for the service too!

No - Vat goes to the Taxman and therefore Government. IIRC it was the EU that removed our Vat exempt status.

As much as we would like to blame RM for everything, sometimes the blame lays elsewhere.

But im sure that RM will take the oppertunity to add a few more pennies onto it

Maybe but IMO highly unlikely. The reason being that the ones who will claim vat back will watch for any overcharge like a hawk. Also POSTCOM & POSTWATCH will no doubt be keeping any eye on it was well as they have to for certain products as part of their duties to promote liberalisation