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2nd April 2012 VAT on Royal Mail Services

Changes to the rules about VAT on postal services and the way in which our services are regulated have affected the VAT status of a number of our products. A limited range of our services became subject to VAT in 2011, and this will extend to all non-Universal Service Obligation services from 2 April 2012.
This is a result of changes made in the Postal Services Act 2011 and is not affected by Ofcom’s regulatory consultations. A summary of the main services affected is available at: www.royalmail.com/vat 
For more information on what the changes in VAT could mean for your business, we recommend speaking to your finance director or a tax specialist. VAT will be automatically applied and shown on your sales invoice, so there is no need to change the way you process your orders.