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VAT changes on postal services – How are you affected?

From 2 April 2012, Royal Mail will have direct control over their prices and no longer be exempt from charging VAT. This could significantly affect your mailing campaigns and how much they cost you.

According to Royal Mail , VAT will be on all “account paid products” with the exception of  International Airmail. This will include:

  • All bulk mail services: Mailsort, Cleanmail, Walksort, Presstream, Sustainable Mail, Advertising Mail, Packetpost, Packetsort, Response Services, PO Box Services
  • 1st and 2nd class standard tariff account mail, automated standard tariff large letters
  • Royal Mail’s charges to Downstream Access operators for all services except ‘standard’ letters and large letters (see below).

At the post office there won’t be VAT on:

  • Postage Stamps
  • Special Deliveries
  • Signed for

And Franking Machine Mail will continue to be exempt.

 

Do the changes affect you?

If you’re currently using any of the affected products, then VAT will be added from 2 April 2012.

If you are a charity, you’ll need to factor in the additional cost of VAT on your postage costs.

 

Is this all bad news?

Not at all. There are a variety of products available for bulk mailing and changes by Royal Mail and other providers may give alternative solutions.

We have the knowledge and expertise you need to make sure.

 

Need help?

We are experienced mailing service operators and members of the DMA. We’ll give you the best advice about what to do in the light of these changes. We can review your current activity, any implications the changes will have and advise what service will give you the best value to make sure your mail still hits the mat when it needs to.

 

Avoid unnecessary additional costscontact Phil today

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