Franking Machines

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

Saturday, 25 February 2012

Vat On Postage and Franking Machines

The Royal Mail have announced their changes to their 2012 VAT on postage and how this affects many customers and franking machine users:

Some services already became iable to Vat in 2012 and without a 'Smart' Franking machine meter customers were no longer able to pay for these servicves via a franking machine.

If you are unsure if your franking machine is compliant with these changes please CLICK HERE to email us or call us on 08450 530930.

For more detailed information on how this years Vat on Postage changes affect franking machine customers please visit: www.vat-postage.co.uk

Normal services such as 1st and 2nd Class franking will continue to be VAT exempt from April 2012.

The list below shows services that are becoming liable to Vat from the 2nd April 2012.

Service VAT change Effective from
Cleanmail® Service becomes liable to VAT 2 April 2012
Cleanmail® Plus Service becomes liable to VAT 2 April 2012
Cleanmail® Advance Service becomes liable to VAT 2 April 2012
Mailsort® (70, 120, 700 and 1400) Service becomes liable to VAT 2 April 2012
Walksort® Service becomes liable to VAT 2 April 2012
Presstream® Service becomes liable to VAT 2 April 2012
Sustainable® Mail Service becomes liable to VAT 2 April 2012
Packetpost Service becomes liable to VAT 2 April 2012
Packetsort Service becomes liable to VAT 2 April 2012
Packetsort Plus Service becomes liable to VAT 2 April 2012
Packetpost Returns Service becomes liable to VAT 2 April 2012
PO Box Services Service becomes liable to VAT 2 April 2012
Advertising Mail (70,120, and 1400) Service becomes liable to VAT 2 April 2012
Automated Standard Tariff Large Letter Service becomes liable to VAT 2 April 2012
Response Services (inc. Licence fees) Service becomes liable to VAT 2 April 2012
Standard Account mail* Service becomes liable to VAT 2 April 2012
Redirect Diversion Service becomes liable to VAT 2 April 2012
Ministerial Pouch Services Service becomes liable to VAT 2 April 2012
Do not redirect Service becomes liable to VAT 2 April 2012
Enhanced bulk mail services available on 2 April will also be liable to VAT with the exception of the service described below.

Further Information

Many business customers can reclaim VAT. If your business is registered for VAT, and sells taxable goods or services, then as a general rule, you will be able to recover the VAT in the normal way on your VAT return. If you use a franking machine for any of the above services then it will need to be fitted with a SMART meter which enables data to be transferred back to the Royal Mail on the type of services used. This in turn automatically generates a VAT statement and allows you to claim the VAT back from HMRC and more importantly allows you to be able to continue using the service.

Royal Mail services that are or will become liable to VAT:

Standard Account mail


Express and Packet services:

Special Delivery™ 9.00a.m. stamp, franking and account
Special Delivery™ Next Day account
Royal Mail Tracked® and Tracked™ Next Day
Royal Mail Sameday®
Packetpost
Packetsort
Packetsort Plus
Packetpost Returns
Recorded Signed For™ will also become liable to VAT if purchased as an add-on to a standard rated service. In all other circumstances it will remain VAT exempt.
Business Mail
Cleanmail®, Cleanmail® Plus and Cleanmail® Advance
Automated Standard Tariff Large Letter
Mailsort® (70, 120, 700 and 1400)
Walksort®
Marketing Services

Advertising Mail (70,120, and 1400)
Sustainable® Mail
Big Book
Royal Mail Heavyweight
Mailmedia®
Door to Door™
Publishing

Pressstream®

Response Services

Response Services (inc. Licence fees)

International Services (VAT will only be added to EU destinations)

International Contract Tracked and Secure Services (Airsure and International Signed For)
International Contract Services (Mixed Mail, Letters, Flats, Packets, Destination Sort and Mbags)
International Airsure®
International Admail and Admail Packets
International Redirections
Outbound Mail Services

Business Collections
Inbound Mail Services

Timed Delivery™
Early Extraction
Early Collect
Selectapost
Local Collect®

Other Services:

Business Mail Secure
Admail
Callers Services
Rural Deliveries
Rural Carriage of Goods
PO Box® Services
Redirect Diversion
Ministerial Pouch services
Do not redirect

Contract Services

Pre-Sorted Delivery
Mailroom Management
Mailroom Consulting Services
Royal Mail Relay®


Some services that remain exempt from VAT, in addition to free services

UK Services

1st and 2nd Class (stamped, franking)
Special Delivery™ Next Day (stamped and franking)
Standard Parcels
Recorded Signed For™ (if purchased with an exempt service)
Keepsafe™

International Services


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

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