As part of the budget last Wednesday, 24th March, the Government announced plans to introduce VAT on some of Royal Mail's products and services from Monday, 31st January 2011. This follows a legal challenge to the VAT exempt status of their services and a ruling from the European Court of Justice on the services that can remain VAT exempt.
The overwhelming majority of the Royal Mail's customers will be unaffected by the Government's proposed changes in VAT announced in the Budget - these include First and Second Class stamped and franked mail; standard parcels and the large majority of Royal Mail's other services will continue to the exempt from VAT.
For the most up to date information on which services will be exempt and which will be subject to VAT please go to www.royalmail.com/vat or contact your Account Manager.