Neopost  VAT on Mail Services The Government has announced that VAT at the standard rate will apply to certain postal services from 31st January 2011. This follows a legal challenge to the VAT exempt status of Royal Mail postal services and a ruling by the European Court of Justice on the postal services that can remain VAT exempt. The overwhelming majority of postal customers will be unaffected by the Government's proposed changes in VAT, First and Second Class stamped, Franked mail, Standard parcels and the large majority of Royal Mail's other services will continue to be exempt from VAT. VAT Exempt Services UK Services First and Second Class (Stamped, Franked and PPI) Special Delivery Next Day (Stamped and Franked) Standard Parcels Recorded Signed For Cleanmail, Cleanmail Plus and Cleanmail Advance Mailsort (70, 120, 700 and 1400) Walksort Presstream Sustainable Mail International Services International Airmail All HM Forces Mail (BFPO) VAT Liable Services Express and Tracked 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 International Services (VAT will only be added to EU destinations) International Contract Services International Airsure International Admail and Admail Packets International Redirections Advertising, Catalogues & Magazine Services Big Book Royal Mail Heavyweight Mail Media Unaddressed Mail Door to Door   Receiving and Managing Mail Services Keepsafe Timed Delivery Early Extraction Early Collect Selectapost Other Services Business Mail Secure Admail Local Collect Callers Services Rural Deliveries Rural Carriage of Goods Contract Services Presorted Delivery Mailroom Management Mailroom Consulting Services Royal Mail Relay A full list of Royal Mail services that will become subject to VAT are available at www.royalmail.com/vat. Most Parcelforce Worldwide products will become liable to VAT. For Parcelforce parcels sent by UK customers from a UK address, the standard rate of VAT will apply to items being sent inside the European Union (including the UK) and a rate of zero would apply to items being sent to the rest of the world. Royal Mail and the franking machine industry suppliers are working together closely to implement this change in a way which provides the best possible service to customers. Royal Mail Postage Rates for Letters, Large Letters & Packets Letter   First Class Price Second Class Price Weight Stamp Price Franking Machine Price Franking Machine Discount Stamp Price Franking Machine Price Franking Machine Discount 0-100g £0.41p £0.36p 12% £0.32p £0.25p 21% Large Letter   First Class Price Second Class Price Weight Stamp Price Franking Machine Price Franking Machine Discount Stamp Price Franking Machine Price Franking Machine Discount 0-100g £0.66p £0.50p 24% £0.51p £0.40p 21% 101-250g £0.96p £0.72p 25% £0.81p £0.59p 27% 251-500g £1.32 £1.04 21% £1.11 £0.85p 23% 501-750g £1.87 £1.51 19% £1.59 £1.23 22% Packets   First Class Price Second Class Price Weight Stamp Price Franking Machine Price Franking Machine Discount Stamp Price Franking Machine Price Franking Machine Discount 0-100g £1.39 £1.20 13% £1.17 £1.00 14% 101-250g £1.72 £1.49 13% £1.51 £1.30 14% 251-500g £2.24 £1.80 19% £1.95 £1.50 23% 501-750g £2.75 £2.23 19% £2.36 £1.82 23% 751-1000g £3.35 £2.70 19% £2.84 £2.18 23% Royal Mail  | Neopost   IDEV LIMITED   JANUARY 2012 | LONDON