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Glazers Chartered Accountants,
843 Finchley Road, London, NW11 8NA.
T: 020 8458 7427, F: 020 8458 8504
E: quality@glazers.co.uk
843 Finchley Road, London, NW11 8NA.
T: 020 8458 7427, F: 020 8458 8504
E: quality@glazers.co.uk
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NewsTax NewsVAT Introduced For Some Postal Services
Tax News
VAT Introduced For Some Postal Services
Businesses are reminded that VAT was introduced for certain postal services from 31 January 2011.
The move follows a court case that has led to a change in VAT rules for postal services throughout the European Union. The Royal Mail says there will be no VAT on:
- the purchase of stamps
- on stamped, franked and account (PPI) first and second class mail
- Special Delivery™ Next Day (stamped and franked)
- standard airmail
- and many business mail services including Mailsort®, Cleanmail® and Packetpost™.
However, services where VAT will be chargeable include:
- business collections
- Special Delivery™ Next Day (on account only)
- Door to Door (leaflet distributions)
- Special Delivery™ 9.00am
- Timed Delivery
- Royal Mail Tracked® and Tracked Next Day
- International Airsure® (to EU countries).
Business users registered for VAT should be able to reclaim this but those that are not VAT registered or sell only VAT-exempt goods or services will not be able to do so.
The Royal Mail also advises businesses with a standard franking machine that they will be unable to use this to buy products to which VAT now applies.
Those with a “smart" machine that can handle VAT will not be affected but should talk to their franking supplier for more information.
LINK: Royal Mail guidance on changes
