VAT On Post – Information For Franking Machines

The Government has announced that VAT at the standard rate will apply to certain postal services from 31st January 2011.

The majority of Royal Mail’s customers will not be affected by this change. Most services will remain exempt from VAT. In particular, First and Second Class stamped and franked mail and standard parcels. You won’t pay VAT when you buy stamps.

The Royal Mail are not increasing the prices of any UK services on 31st January 2011; they are only applying VAT to existing prices for the services affected.

Franked Mail

You will not be able to buy affected products using a standard franking machine from 31st January 2011. They will still be available if you have a €œsmart€ meter which can handle VAT. For more help on this contact your supplier or Mailcoms on 01543 572 776.

Summary

These are some of the services the Royal Mail will charge VAT that are most likely to affect users of a franking machine:

– Special Delivery before 9am (all product variants)

– Saturday guarantee added to Special Delivery next day

– Special Delivery next day with compensation added

– Ad Hoc Collections

– Airsure to EU destinations

– Standard Parcels with additional compensation added

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)

If you have any questions about how VAT on postal services affects your business, contact Mailcoms on 01543 572 776.

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.