Vat On Postage and Franking Machines

The Royal Mail have announced their changes to their 2012 VAT on postage and how this affects many customers and franking machine users.

Some services already became liable to VAT in 2012 and without a ‘Smart’ Franking machine meter customers were no longer able to pay for these services via a franking machine.

If you are unsure if your franking machine is compliant with these changes please email info(at)mailcoms.co.uk or call us on 01543 572 776.

Normal services such as 1st and 2nd Class franking will continue to be VAT exempt from April 2012.

The list below shows services that are becoming liable to VAT from the 2nd April 2012.

Service VAT change Effective from

– Cleanmail® Service becomes liable to VAT 2 April 2012

– Cleanmail® Plus Service becomes liable to VAT 2 April 2012

– Cleanmail® Advance Service becomes liable to VAT 2 April 2012

– Mailsort® (70, 120, 700 and 1400) Service becomes liable to VAT 2 April 2012

– Walksort® Service becomes liable to VAT 2 April 2012

– Presstream® Service becomes liable to VAT 2 April 2012

– Sustainable® Mail Service becomes liable to VAT 2 April 2012

– Packetpost Service becomes liable to VAT 2 April 2012

– Packetsort Service becomes liable to VAT 2 April 2012

– Packetsort Plus Service becomes liable to VAT 2 April 2012

– Packetpost Returns Service becomes liable to VAT 2 April 2012

– PO Box Services Service becomes liable to VAT 2 April 2012

– Advertising Mail (70,120, and 1400) Service becomes liable to VAT 2 April 2012

– Automated Standard Tariff Large Letter Service becomes liable to VAT 2 April 2012

– Response Services (inc. Licence fees) Service becomes liable to VAT 2 April 2012

– Standard Account mail* Service becomes liable to VAT 2 April 2012

– Redirect Diversion Service becomes liable to VAT 2 April 2012

– Ministerial Pouch Services Service becomes liable to VAT 2 April 2012

– Do not redirect Service becomes liable to VAT 2 April 2012

– Enhanced bulk mail services available on 2 April will also be liable to VAT with the exception of the service described below.

Further Information

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. If you use a franking machine for any of the above services then it will need to be fitted with a SMART meter which enables data to be transferred back to the Royal Mail on the type of services used. This in turn automatically generates a VAT statement and allows you to claim the VAT back from HMRC and more importantly allows you to be able to continue using the service.

Royal Mail services that are or will become liable to VAT:

Standard Account Mail

Express & Packet Services:

– Special Delivery 9.00AM stamp, franking and account

– Special Delivery Next Day account

– Royal Mail Tracked® and Tracked Next Day

– Royal Mail Sameday®

– Packetpost

– Packetsort

– Packetsort Plus

– Packetpost Returns

– Recorded 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.

– Business Mail

– Cleanmail®, Cleanmail® Plus and Cleanmail® Advance

– Automated Standard Tariff Large Letter

– Mailsort® (70, 120, 700 and 1400)

– Walksort®

– Marketing Services

– Advertising Mail (70,120, and 1400)

– Sustainable® Mail

– Big Book

– Royal Mail Heavyweight

– Mailmedia®

– Door to Door

– Publishing

– Pressstream®

– Response Services

Response Services (inc. Licence fees)

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

– International Contract Tracked and Secure Services (Airsure and International Signed For)

– International Contract Services (Mixed Mail, Letters, Flats, Packets, Destination Sort and Mbags)

– International Airsure®

– International Admail and Admail Packets

– International Redirections

– Outbound Mail Services

Business Collections

Inbound Mail Services

– Timed Delivery

– Early Extraction

– Early Collect

– Selectapost

– Local Collect®

Other Services:

– Business Mail Secure

– Admail

– Callers Services

– Rural Deliveries

– Rural Carriage of Goods

– PO Box® Services

– Redirect Diversion

– Ministerial Pouch services

– Do not redirect

Contract Services

– Pre-Sorted Delivery

– Mailroom Management

– Mailroom Consulting Services

– Royal Mail Relay®

Some services that remain exempt from VAT, in addition to free services.

UK Services

– 1st and 2nd Class (stamped, franking)

– Special Delivery Next Day (stamped and franking)

– Standard Parcels

– Recorded Signed For (if purchased with an exempt service)

– Keepsafe

International Services

– International Airmail

– International Surface Mail

– International Signed For

– All HM Forces Mail (BFPO)

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.