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.
