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VAT On Post – VAT On Postage – Postage VAT – A Guide For Franking Machine Users

Information On VAT And Postal Services For Franking Machine Users

The Government recently announced that standard rate VAT will start to apply to some postal services from 31st January 2011.

Most Royal Mail customers will be unaffected by this change, since most services will stay exempt from VAT. Like First and Second Class stamped and franked mail and standard parcels. Meaning there’ll be no VAT to pay when you buy stamps. All the products that are going to attract VAT from 31st January, together with related pricing information, are listed in the Royal Mail’s new products and pricing document.


Please note that the Royal Mail are not increasing the basic price of any of the Royal Mail services on 31st January 2011. All the Royal Mail is doing is starting to apply VAT to those prices, as mandated by government.

Further Advice

Most businesses are able to recover VAT in full, making these changes even less significant, but the Royal Mail do recognise that a few cannot. For professional advice talk to your Finance department, Accountant or Tax Advisor.

International Contract Mail

International contract services to EU countries are going to start attracting VAT from 31st January 2011. But you won’t find the individual names of all these services listed on this page. That’s because the Royal Mail’s’re currently improving and simplifying the Royal Mail’s international contract range. More details to come in December.

Franked Mail

If you’ve got a standard franking machine, you won’t be able to use it to buy any of the products affected by the introduction of VAT from 31st January 2011. If you have a “smart” meter which can handle VAT, you’ll be fine. Speak to Mailcoms on 01543 572 776 or your supplier to find out more.

Online Postage

You will not be able to buy affected services on SmartStamp® and Online Postage for a while. They will still be available at Post Office® branches and on account.


These are some of the services the Royal Mail’s will charge VAT on:

– Express and Tracked services

– Special Delivery™ 9.00a.m. Stamp, Franking and Account

– Special Delivery™ Next Day Account (Stamp and Franked remain Exempt)

– Royal Mail Tracked® and Tracked™ Next Day

– Royal Mail Sameday®

– International Services (VAT will only be added to EU destinations)

– International Contract Services

– International Airsure®

– International Admail and Admail Packets

– International Redirections

These are some of the services that remain exempt from VAT:

UK Services

– First and Second Class (Stamped, Franked and PPI)

– Special Delivery™ Next Day (Stamped and Franked)

– Standard parcels

– Recorded Signed For™

– Cleanmail®, Cleanmail® Plus and Cleanmail® Advance

– Mailsort® (70, 120, 700 and 1400)

– Walksort®

– Presstream®

– Sustainable® Mail

– International Services

– International Airmail

– International Surface Mail

– All HM Forces Mail (BFPO)

Got questions about how VAT on postal services could affect your business? Contact Royal Mail Customer Services on 08456 113 421 or Mailcoms on 01543 572 776, Monday to Friday, 9.00AM to 5.30PM.

At Mailcoms Ltd we do not operate with commission paid sales executives and we believe in giving factual information and telling you how it is.

If you are interested in getting a franking machine or upgrading to a Mailmark franking machine with even lower prices available, then please view our franking machine page here or call us today on 01543 572 776.

We are a Royal Mail Authorised Independent Inspector & Maintainer of Franking Machines with over 20,000 customers nationwide and we can supply you with our very own range of models.

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