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.