Franking Machines

Indepth Comments from customers and suppliers regarding the UK Franking Machines industry.

Sunday, 14 November 2010

Vat on Post - Information for Franking Machines

The Government has announced that VAT at the standard rate will apply to certain postal services from 31st January 2011.

The majority of Royal Mail’s customers will not be affected by this change. Most services will remain exempt from VAT. In particular, First and Second Class stamped and franked mail and standard parcels. You won’t pay VAT when you buy stamps.

The Royal Mail are not increasing the prices of any UK services on 31st January 2011; they are only applying VAT to existing prices for the services affected.

Franked mail

You will not be able to buy affected products using a standard franking machine from 31st January 2011. They will still be available if you have a “smart” meter which can handle VAT. For more help on this contact your supplier or Mailcoms on 08450 530930.


These are some of the services the Royal Mail will charge VAT that are most likely to affect users of a Franking Machine:

Special Delivery before 9am (all product variants)
Saturday guarantee added to Special Delivery next day
Special Delivery next day with compensation added
Ad Hoc Collections
Airsure to EU destinations
Standard Parcels with additional compensation added

These are some of the services that remain exempt from VAT:

UK Services

First and Second Class (Stamped, Franked and PPI)
Special Delivery Next Day (Stamped and Franked)
Standard Parcels
Recorded Signed For
Cleanmail, Cleanmail Plus and Cleanmail Advance
Mailsort (70, 120, 700 and 1400)
Sustainable Mail

International Services:

International Airmail
International Surface Mail
All HM Forces Mail (BFPO)

If you have any questions about how VAT on postal services affects your business, contact Mailcoms on 08450 530930.


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