Is VAT Chargeable on Postage?
If posting via Royal Mail -
New VAT rules came into force on 31st January 2011, however most services posted via Royal Mail currently continue to be exempt from VAT, however changes to this are planned from 2nd April 2012, meaning that most bulk services that are undertaken will now be subject to VAT, only those 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 http://www.royalmail.com/vat.
If posting via Downstream Access Providers
Posting via DSA providers (such as TNT), will continue to be liable for VAT.
For organisations and 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.