Postal Services
From 31st January 2011 some postal services will become liable to VAT at the standard rate. It is important to note that the rules apply to services which have been individually negotiated; not all postal services will be liable to VAT. As a result of this, businesses need to be mindful of when they should obtain VAT invoices and claim input tax. HMRC have recently issued an online services Manual which outlines the exceptions to the new rules. If you or your client use significant amounts of postal services then it could be worthwhile reviewing. Additional information can also be found on Royal Mails website.