VAT 2012
Changes to VAT rules and the way in which our products are regulated have affected the VAT status of a number of our products. A limited range of our products became subject to VAT through 2011, and this has been extended to other business products from 2 April 2012.
A summary of the main products affected is shown later on this page.
Universal services (USO) such as 1st and 2nd Class stamps will continue to be VAT exempt. A list of products that will remain VAT exempt is also shown later on this page.
For more information on Royal Mail prices for 2012 visit: www.royalmail.com/prices2012
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. For professional advice, talk to your Finance department, accountant or tax advisor. You can also find more information on VAT at the HMRC website: www.hmrc.gov.uk/vat (new window).
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Royal Mail products that are liable to VAT
Parcel Despatch
- Special Delivery Guaranteed by 9am™ (stamps, franking and account)
- Special Delivery Guaranteed by 1pm™ (account)
- Royal Mail Tracked 24 and Royal Mail Tracked 48
- Royal Mail Sameday®
- Royal Mail 1st and 2nd Class Account Mail (formerly Packets)
- Royal Mail 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.
Marketing Services
- Advertising Mail™ (formerly Advertising Mail 70,120, and 1400, including Big Book and Heavyweight options)
- Sustainable® Advertising Mail (formerly Sustainable Mail)
- Advertising Mail™ with Response (formerly mailmedia®)
- Door to Door™
Publishing
- Publishing Mail (formerly Pressstream®)
General Correspondence
- Business Mail 1st Class (formerly Standard Account letters and large letters, Automated Standard Tariff Large Letter (ASTLL), Cleanmail®, Cleanmail® Plus and Cleanmail® Advance, Mailsort® 70, 120, 700 and 1400, and Walksort®)
- Business Mail (formerly Standard Account letters and large letters, Automated Standard Tariff Large Letter (ASTLL), Cleanmail®, Cleanmail® Plus and Cleanmail® Advance, Mailsort® 70, 120, 700 and 1400, and Walksort®)
Response Services
- Response Services License fees
- Special Delivery Guaranteed Returns™
- Business Reply Plus and Freepost Plus
- Business Reply Standard, Freepost Standard and Freepost NAME
International (VAT will only be added to EU destinations)
- International Contract Tracked and Secure Services (Contract Airsure® and Contract Signed For)
- International Contract Services (Mixed Mail, Letters, Flats, Packets, Destination Sort and Mbags)
- Airsure®
- International Admail and Admail Packets
- International Redirections
Outbound Mail
- Collections
Inbound Mail
- PO Box®
- Timed Delivery™
- Early Collect
- Early Extraction™
- Pre-sorted Delivery
- Selectapost
- Local Collect®
- Diversion
Other Products
- Business Mail Secure
- Admail
- Callers Services
- Posting Cheque administration charge
- Private Posting Box
- Royal Mail administration fee for collection of HMRC charges
- Royal Mail Pouch Services
- Rural Newspaper Delivery
- Rural Carriage of Goods
- Redirect Diversion
- Ministerial Pouch services
- Do not redirect
- Safebox
Contract Products
- Mailroom Management
- Mailroom Consulting Services
- Royal Mail Relay®
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Royal Mail products that remain exempt from VAT, in addition to free products
UK
- 1st and 2nd Class (stamps, online, franking, account*)
- Special Delivery™ Next Day (stamps and franking)
- Standard Parcels
- Recorded Signed For™ (if purchased with a VAT exempt service)
- Keepsafe™ (personal and business)
*1st and 2nd class account is a new product that was launched in April 2012. This is a Universal Service which does not qualify for volume related discounts. Royal Mail also offers a 1st and 2nd class service called Business Mail which is available on account. Volume related discounts are available on this service for larger postings and VAT is liable
International
- Airmail
- Surface Mail
- International Signed For
- All HM Forces Mail (BFPO)
Inbound Mail
- Redirections within UK (personal and business)
