VAT On Mail - From 2nd April 2012 a wider range of Royal Mail services will be VAT liable, use a Smart Franking Machine to reclaim VAT on Royal Mail services.

VAT on Royal Mail Services 2014

A wider range of Royal Mail services became VAT liable on 2nd April 2012. Many bulk mail products that once attracted volume postage discounts are no longer VAT exempt.
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

Reclaiming VAT on Royal Mail services are only available on Franking Machines with Smart technology. Smart Franking 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 Liable for 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
  • Pressstream®
Response Services
  • Response Services (inc. Licence fees)
Outbound Mail Services
  • Business Collections
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®
Frank and Save - save 7p on every 1st Class letter, save 14p on every 2nd Class letter, up to 28% cheaper than a stamp

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