HM Revenue and Customs Brief 34/11
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Issued 15 September 2011
VAT: postal and postbus services - autumn 2011
Consequential amendments to VAT legislation following the
implementation of the Postal Services Act 2011
HM Revenue & Customs (HMRC) is amending the VAT
legislation relating to supplies by a universal service provider of
passenger transport and postal services, following the implementation
of the Postal Services Act 2011 (PSA 2011). The amendments, which take
effect on 1 October 2011, simply maintain the current VAT treatment of
these supplies, but are necessary to reflect changes to the postal
services regime.
PSA 2011, which received Royal Assent on 13 June 2011,
provides for the introduction of a regulatory framework based on
general authorisation to replace the licensing regime that was
introduced under the Postal Services Act 2000 (PSA 2000). As Group 3
(Postal Services) of Schedule 9 (Exemptions) to the Value Added Tax Act
1994 refers to a licence duty that will no longer exist after the
regulatory changes are made, HMRC are amending the legislation to
maintain the scope of the VAT exemption for postal services. Similarly,
HMRC are amending Group 8 (Transport) of Schedule 8 (Zero-Rating) to
the Act to reflect the fact that PSA 2011 has superseded PSA 2000.
The amendments to the VAT legislation are being made by the
Postal Services Act 2011 (Consequential Modifications and Amendments)
Order 2011 (SI 2011/2085).
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Article Published/Sorted/Amended on Scopulus 2011-09-26 11:56:36 in Tax Articles
