UK Mail heralds VAT breakthrough
UK Mail, the postal services arm of the Business Post Group, has secured an important breakthough that it is confident will soon see the launch of a brand new “Agent for Access” service. This will enable companies in the financial services and charity sectors to benefit from a downstream access postal service which they have previously been unable to enjoy. This unprecedented move extends postal choice to a whole new market of mailers and marks an important development for the deregulated mail sector.
Many of the largest mail users are businesses that are not VAT registered – such as banks, insurance companies and charities. Any VAT they are charged on services they use, has to be taken as a cost. This is down to the fact that they can’t charge VAT themselves when supplying their customers.
“Agent for Access” is the service solution tailored specifically to suit these businesses’ needs.
Up until now VAT rules have put this sector at an automatic disadvantage. Current legislation states that all postal operators (bar Royal Mail) must apply VAT to their postal charges, leaving non-VAT businesses with limited options. For them, enjoying UK Mail’s full range of service benefits has not always come with the same overall cost savings that UK Mail offers other mailers.
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