There is a general feeling abroad that postage is VAT free. This isn’t actually true, as a lot of postal services already attract VAT, including all those from the rivals to Royal Mail.

As for Royal Mail, quite a few of their services attract VAT, and from 2 April many more will become services that attract VAT at the standard rate.

Below is the full list of such services – but if you want a rule of thumb, virtually every Royal Mail service that allows you to get your postage at less than the cost of buying stamps in the Post Office is going to attract VAT.

Summary list

Royal Mail services that are already liable to VAT or will become liable to VAT in April:

Standard Account mail

Express and Packet services

Special Delivery 9.00a.m. stamp, franking and account
Special Delivery Next Day account
Royal Mail Tracked and Tracked Next Day
Royal Mail Sameday
Packetpost
Packetsort
Packetsort Plus
Packetpost Returns
Recorded Signed For will also become liable to VAT if purchased as an add-on to a standard rated service. In all other circumstances it will remain VAT exempt.
Business Mail

Cleanmail, Cleanmail Plus and Cleanmail Advance
Automated Standard Tariff Large Letter
Mailsort (70, 120, 700 and 1400)
Walksort
Marketing Services

Advertising Mail (70,120, and 1400)
Sustainable Mail
Big Book
Royal Mail Heavyweight
Mailmedia
Door to Door
Publishing

Pressstream
Response Services

Response Services (inc. Licence fees)
International Services (VAT will only be added to EU destinations)

International Contract Tracked and Secure Services (Airsure and International Signed For)
International Contract Services (Mixed Mail, Letters, Flats, Packets, Destination Sort and Mbags)
International Airsure
International Admail and Admail Packets
International Redirections
Outbound Mail Services

Business Collections
Inbound Mail Services

Timed Delivery
Early Extraction
Early Collect
Selectapost
Local Collect
Other Services

Business Mail Secure
Admail
Callers Services
Rural Deliveries
Rural Carriage of Goods
PO Box Services
Redirect Diversion
Ministerial Pouch services
Do not redirect
Contract Services

Pre-Sorted Delivery
Mailroom Management
Mailroom Consulting Services
Royal Mail Relay
Some services that remain exempt from VAT, in addition to free services

UK Services

1st and 2nd Class (stamped, franking)
Special Delivery™ Next Day (stamped and franking)
Standard Parcels
Recorded Signed For™ (if purchased with an exempt service)
Keepsafe™
International Services

International Airmail
International Surface Mail
International Signed For
All HM Forces Mail (BFPO)
Hamilton House Mailings Ltd reg number 2444392 VAT 354907535GB. Phone 01536 399 000.