Threat of VAT introduction on Royal Mail postal services

Howard Lake | 6 April 2004 | News

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If the possibility of VAT being levied on Royal Mail postal services worries your charity, you should respond to Postcomm’s current consultation.

Independent regulator Postcomm is looking into Royal Mail’s privileged position and is questioning whether it should continue not to charge VAT on postal services while its competitors are required to charge VAT. These and other privileges are the legacy of Royal Mail’s monopoly on postal services.

Introducing VAT on postal services would cost charities a great deal, given how much many of them rely on direct mail for fundraising activities.

The Institute of Fundraising will respond to the consultation document, but it is encouraging other affected organisations to respond as well.

‘A Review of Royal Mail’s Special Privileges’ can be viewed on Postcomm’s Web site. Responses should be sent be 12 April 2004.

About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale. He is the founder of Fundraising Camp and co-founder of GoodJobs.