Royal Mail Special Delivery and VAT?

Royal Mail Special Delivery and VAT?

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We've received a price increase mailout from Royal Mail today, together with notice of VAT changes.

The notice lists products in tables:

1. Products becoming liable to VAT from 2nd April

2. Products already liable to VAT

3. Products which will remain exempt.

Under table 2 (products already liable to VAT) it starts of with Special Delivery 9:00am and Special Delivery Next Day etc.

Are these really liable to VAT? We use these services fairly frequently, and don't recall receiving a VAT receipt.

We've also looked at the Royal Mail website here http://www.royalmail.com/delivery/business-delivery-options-uk/special-d... and it says 'prices in this table are exempt from VAT', but further down it says that Special Delivery on Saturday is subject to VAT, as is 'Price List Special Delivery' whatever that is.

Can anyone clarify the position please?

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By JazzySasha
21st Feb 2012 15:51

TNT Case

I think some of the changes are as a result of the TNT case - see details here :-

http://www.monckton.com/docs/library/RoyalMailTNTARBJune09.pdf 

As a result of the ECJ ruling, only the services that the Royal Mail makes in it's capacity as "universal service provider" are exempt.

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