VAT on Postal Services
10th August 2012
As part of the budget on Wednesday 24 March 2010, the Government announced plans to introduce VAT on some postal products and services from Monday 31 January 2011. This follows a legal challenge to the VAT exempt status of Royal Mail services and a ruling by the European Court of Justice on the services that can remain VAT exempt. The overwhelming majority of postal customers will be unaffected by the Government’s proposed changes in VAT, 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. A list of the Royal Mail services that remain exempt and a list of the small number of services that will be subject to VAT is available at www.royalmail.com/vat. This list is not totally exhaustive, but it includes Special Delivery 9am and International Airsure. Royal Mail and the franking meter industry are working together closely to implement this change in a way which provides the best possible service to customers. We will provide further information as soon as we can.