Many businesses have already been affected by the changes in VAT during 2011, where certain Royal Mail services attracted VAT for the first time. This has meant a large number of businesses have reviewed there business mail process with a view to modernising their equipment and finding further ways to reduce costs in their postal system.
This further supports the government’s view that all services, barring 2nd class stamps should eventually become liable to VAT, before the enterprise is sold off to private investors. The initial changes to VAT on postal services was instigated by the amendments to rules by the European Union, with change only affects some Royal Mail services. Some of their services are part of the Universal Service Obligation (USO) or are subject to price control by the Regulator.
George Bevan, Managing Director of The Mailing Room commented; "This is the continued migration of postal services to becoming part of a competitive market and offering a continued high level of service to the customer. To support this, discounts will continue to be available through partners such as ourselves, ensuring that businesses are not unduly affected by any increase in costs.”
“As the Royal Mail prepares for its sale, it is key that UK business update its franking technology to account for VAT as well as other changes that are likely to occur over the coming months. Vince Cable made it clear during his announcement of the privatisation of the Royal Mail, that the business must be commercially viable and that this process would accelerate further during 2012.”
From the 2nd April 2011 specific services affected are:
Cleanmail®Service, Cleanmail® Plus Service,
Cleanmail® Advance Service,
Mailsort® (70, 120, 700 and 1400) Service
Packetsort Plus Service
Packetpost Returns Service
PO Box Services
Advertising Mail (70,120, and 1400)
Automated Standard Tariff
Large Letter Service
If you believe that the changes to the VAT system may affect your franking machine or you require more information, please feel to contact us on 0161 797 7778 or visit www.themailingoom.com
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The Mailing Room specialise in reducing the costs of your mailings by lowering the postage costs of your in-house franking machine system. We do this by ensuring that you are using the most cost efficient postage service.