Some types of postal
services offered by the Royal Mail will be
subject to VAT from 31 January 2011.
According to the latest information issued
by HMRC“In broad terms, the proposed
changes will mean that any service which
is individually negotiated or not subject
to any price and regulatory control will
become liable to VAT at the standard rate.
This includes, but is not limited to:
- all individually negotiated services
- Parcelforce services
- door-to-door (unaddressed mail)
- mailroom services”.
The change follows European Court of
Justice Decision known as TNT Post UK Ltd
which ruled that the UK has applied the
exemption for postal services more widely
than was permitted under the special rules
which applied to Post Office Mail. HMRC
will introduce new legislation to amend
the rules from 31 January 2011.
HMRC are currently considering claims
submitted by businesses following the TNT
case. As claims are subject to strict time
limits it is important to act quickly. It
should be noted that first, second and
metered mail and standard parcel delivery
are and will continue to be exempt. A
claim cannot be made in respect of these
services.
For more information please do get in
touch.
Internet links:
VAT Brief and
VAT on postage |
