Royal Mail VAT Changes 2011
lnformation on VAT and postal services
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. The Government confirmed this in the Budget on 22nd June 2010. 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 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.
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 (no VAT will be added for non-EU destinations)
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
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