Vat On Postage – Franking Machines

Don’t be fooled by franking machine manufacturers or their sales people into making you believe you actually need a VAT compliant franking machine due to the 2011 VAT changes.

Yes its true that the Royal Mail have had VAT imposed on some of their products & services but not on the majority of services you would access using a franking machine. In fact after analyzing their announcement on the Royal Mail website two of the services that you may occasionally use are the ‘before 9am’ Special Delivery Service (the next day standard special delivery service is still zero rated and remains VAT exempt) and the ‘International Airsure’ service which is basically special delivery but overseas (Non EU countries remain VAT exempt).

If you do not use these services or any other services where VAT is applied then you will not be affected at all!!

Don’t listen to the sales people or the franking machine manufacturers who would be more than happy to cloud the issue.

Read it for yourself at the Royal Mail website -> https://www.royalmail.com/information-vat-and-postal-services.

Below are a list of the services that remain VAT exempt:

We have filtered out the most commonly used services and have narrowed it down to the following:-

– 1st and 2nd Class Stamped Mail

– 1st and 2nd Class Franked Mail

– 1st and 2nd Class PPI Mail

– Special Delivery Next Day Stamps and Franking

– Standard Parcels

– Recorded Signed For

– 1st and 2nd Class Cleanmail, Cleanmail plus and Cleanmail Advance

– International services

– International Airmail

– International Surface Mail

Services that some users of franking machines may use that will become subject to VAT:

– Special Delivery 9.00AM

International services: (no VAT will be added for non-EU destinations)

– International Airsure

Royal Mail are still assessing which services will become liable to VAT. Please visit the Royal Mail page by clicking here on this subject by clicking here on this subject for further updates.

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.