Changes to VAT rules and the way in which Postal Services are regulated have affected the VAT status of a number of Royal Mail products. A limited range of their services became subject to VAT through 2011, and this will extend to all bulk mail services from April 2012.
Universal services (USO) such as 1st and 2nd Class stamps will continue to be VAT exempt from April 2012. For more information on Royal Mail prices for 2012 visit:
This will bring a level playing field in terms of VAT charging to the postal sector where DSA providers already have to charge VAT. It will cause some confusion and potential cost increaes to clients that have not historically had to pay VAT on postage and have not been able to reclaim it.
Romax offers a full Single Source Solution which currently exempts certain print and mail packs from paying VAT. If you are a charity, university or other organisation that is unable to reclaim VAT, the single source solution may well be beneficial.
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