Confirmation on Access Prices & VAT April 2012
Our regulator, Ofcom has published its decision document on the future regulatory framework for Access services. We can now confirm the Access prices which we published on 9th January 2012 will come into effect from 2nd April 2012 as indicated.
We can also confirm that Access Packet services (including A3 Packets) and Access Premium services will not be price controlled, as we indicated to you on the 27th January 2012, which means that these Access services will now become subject to 20% VAT with effect from 2nd April 2012.
The Access services affected are those as detailed in our letter of 19th March 2012 and are listed below in the attached document. You should note that where Royal Mail invoices reflect a particular surcharge relating to non-compliant Access mailing items that the surcharge will be treated for VAT purposes the same as the original service declared e.g. if a customer has their missorted items forwarded at a surcharge of First Class STL, in accordance with the Access Agreement, the customer will not be charged VAT on the missorted Standard Access Letter and Large Letter items but will be charged VAT on A3 Packets and Packets items and on Access Premium items. Hence you will note 'STL Vatable' appears in the miscellaneous list of services below.