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VAT Information on postal services for Franking Machine Users

From the 2nd April 2012, many bulk mail contract products were no longer price controlled and regulated, making them liable to VAT (see list below)

To help you understand which products are liable to VAT, please see the three tables that show:

  1. Products which became liable to VAT from the 2nd April 2012
  2. Products already liable to VAT
  3. Products which remain VAT exempt

1. From Monday the 2nd April 2012, products listed below were no longer price controlled and regulated, therefore making them liable to VAT.

  • Cleanmail
  • Cleanmail Plus
  • Cleanmail Advance
  • Mailsort (70, 120, 700 and 1400)
  • Walksort
  • Sustainable Mail
  • Packetpost
  • Packetsort
  • Packetsort Plus
  • Packetpost Returns
  • Presstream
  • Advertising Mail (70, 120, and 1400)
  • Automated Standard Tariff Large Letter
  • Standard Account Mail
  • Response Services (inc License fees)
  • Redirect Diversion
  • Ministerial Pouch Services
  • PO Box Services
  • Do not redirect

Many business customers can reclaim VAT. If your business is registered for VAT, and sells taxable goods or services, then as a general rule, you will be able to recover the VAT in the normal way on your VAT return.

2. Products already liable to VAT.

Express and Packet Services

  • Special Delivery 9.00am (stamps, franking and account)
  • Special Delivery Next Day (account)
  • Royal Mail Tracked and Tracked Next Day
  • Royal Mail Sameday
  • Recorded Signed For becomes liable to VAT if purchased as an add-on to a standard rated service. In all other circumstances it will remain VAT exempt

Marketing Services

  • Big Book
  • Royal Mail Heavyweight
  • Mailmedia
  • Door to Door

Inbound Mail Services

  • Timed Delivery
  • Early Extraction
  • Early Collect
  • Selectapost
  • Local Collect

Contract Services

  • Pre-Sorted Delivery
  • Mailroom Management
  • Mailroom Consulting Services
  • Royal Mail Relay

International Services (VAT will only be added to EU destinations)

  • International Contract Services
  • International Airsure
  • International Admail and Admail Packets
  • International Redirections

Other Services

  • Business mail secure
  • Admail
  • Callers Services
  • Rural Deliveries
  • Rural Carriage of Goods

3. Products which remain VAT exempt.

UK Services

  • First and Second Class (stamps, franking and account)
  • Special Delivery Next Day (stamps and franking)
  • Standard Parcels
  • Recorded Signed For (if purchased with an exempt service)
  • Keepsafe

International Services

  • International Airmail
  • International Surface Mail
  • International Signed For
  • All HM Forces Mail (BFPO)