Information on VAT and postal services

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 summary of the main products affected is shown below.

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 below.

For more information on Royal Mail prices visit: www.royalmail.com/current-postage-prices

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 on the GOV.UK website: www.gov.uk/topic/business-tax/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 Mai
  • 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™ 
  • Sustainable® Advertising Mail 
  • Door to Door™

Publishing

  • Publishing Mail

General Correspondence

  • Business Mail 1st Class
  • Business Mail 

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 be charged to EU destinations)

  • International Business Tracking and Signature services (International Business Tracked & Signed, International Business Signed and International Business Tracked)
  • International Business Services (International Business Mail, International Business Parcels) and where a price is worldwide then VAT will apply to all destinations
  • International Business Mail Response and International Parcel Returns and where a price is worldwide then VAT will apply to all destinations)
  • International Tracked
  • 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®

UK

  • 1st and 2nd Class (stamps, online, franking, account*)
  • Special Delivery Guaranteed™ (stamps and franking)
  • Royal Mail 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

  • International Standard
  • International Economy
  • International Signed and International Tracked & Signed
  • All HM Forces Mail (BFPO)

Inbound Mail

  • Redirections within UK (personal and business)