 |
VAT on Royal Mail Services
| From 2nd April 2012 a wider range of Royal Mail services will be VAT liable. Many bulk mail products that attract volume postage discounts will no longer be price controlled and regulated, so will therefore be liable to VAT. |
| Royal Mail wrote to customers in January 2012 to inform about changes in the way their services are regulated following the Postal Services Act 2011. This has affected the VAT status of a number of Royal Mail products (see below). |
Smart Franking Machines Enable VAT to be Reclaimed |
| VAT services will only be available on Franking Machines with Smart technology. Neopost Franking Machines models with the designation beginning 'IS' are Smart Franking Machines. |
| These machines frank at VAT-inclusive prices and allow reclaiming of VAT through production of a VAT invoice that is acceptable to HMRC. All other model designations are non-smart meter and therefore are incapable of processing VAT liable mail. |
VAT Exempt Postal Services |
UK Services
- First and Second Class (Stamped, Franked and PPI)
- Special Delivery Next Day (Stamped and Franked)
- Standard Parcels
- Recorded Signed For
- Keepsafe™
|
|
International Services
- International Airmail
- International Signed For
- All HM Forces Mail (BFPO)
|
Royal Mail Services that become Liable for VAT on 2nd April 2012 |
- Cleanmail®
- Cleanmail® Plus
- Cleanmail® Advance
- Mailsort® (70, 120, 700 and 1400)
- Walksort®
- Presstream®
- Sustainable® Mail
- Packetpost
- Packetsort
- Packetsort Plus
- Packetpost Returns
- PO Box Services
- Advertising Mail (70,120, and 1400)
- Automated Standard Tariff Large Letter
- Response Services (inc. Licence fees)
- Standard Account mail*
- Redirect Diversion
- Ministerial Pouch Services
- Do not redirect
|
|
|
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.
Business Mail
- Cleanmail®, Cleanmail® Plus and Cleanmail® Advance
- Automated Standard Tariff Large Letter
- Mailsort® (70, 120, 700 and 1400)
- Walksort®
Marketing Services
- Advertising Mail (70,120, and 1400)
- Sustainable® Mail
- Big Book
- Royal Mail Heavyweight
- Mailmedia®
- Door to Door™
International Services (VAT will only be added to EU destinations)
- International Contract Tracked and Secure Services (Airsure and International Signed For)
- International Contract Services (Mixed Mail, Letters, Flats, Packets, Destination Sort and Mbags)
- International Airsure®
- International Admail and Admail Packets
- International Redirections
|
|
Publishing
Response Services
- Response Services (inc. Licence fees)
Outbound Mail Services
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®
|
|
|
|
