New VAT rules came into force on 31st January 2011. Until now most services posted via Royal Mail have continued to be exempt from VAT. However, from 2nd April 2012 this situation changes, meaning that most bulk services will now be subject to VAT. Only services that are required to be provided under the Universal Service Obligation will continue to remain exempt from VAT (e.g. purchasing of 1st and 2nd class stamps.) Full details can be found at www.royalmail.com/vat.

The situation with Downstream Access (DSA) postal service providers, such as City Link, remains unchanged & these services will continue to be liable for VAT.

For charities that are not VAT registered we have a number of options available to help reduce the VAT burden. Just contact us and we will be happy to explain the options available.

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