VAT ISSUES

Value Added Tax (VAT) is seen as one of the last barriers to be removed for full and genuine competition to emerge in the UK postal market.

 

Historically, Royal Mail enjoys many special privileges that were granted at a time when they enjoyed their monopoly status as a sole provider of postal services - one of these is that it does not charge VAT on postal services.  New postal operators are required to charge VAT at 17.5%.

 

The area of VAT is indeed a complex issue.  Although Postcomm share our view that this anomaly should be removed, it is not within their remit to make legislative changes.  Such decisions are made by the HM Treasury in line with Directives which eminate from the EC.  We will therefore need a Europe wide decision before this last barrier to competition can be lifted.

 

If your organisation is unable to reclaim VAT then you may still be able to benefit from postal savings.  Please contact the ONEPOST team to discuss a solution for your particular requirements. 

 

ONEPOST .. one transaction