Spotlight On VAT

VAT on postal charges

Many charities and not-for-profit organisations will be affected by the introduction of VAT on a number of Royal Mail postal services from 2 April this year.

Some postal services, including stamped or franked first and second class post, will remain exempt from VAT as they are part of the Royal Mail's universal service obligation. Other postal services subject to regulatory price control will also remain VAT exempt.

However, VAT will be charged from 2 April 2012 on many other postal services, including business collections, Special Delivery" Next Day (on account only) and door to door. A full list of the postal services that are changing their VAT status on 2 April, can be found on the Royal Mail website at the following address: www.royalmail.com/customerservice/ terms-and-conditions/vat-changes