Part 2Other taxes and duties

Value added tax

22Postal services etc

1

In Schedule 8 to VATA 1994 (zero-rating), in Group 8—

a

in item 4 (transport of passengers), for “the Post Office company” substitute “ a universal service provider ”, and

b

after Note (4D) insert—

4E

Universal service provider” means a person who provides a universal postal service (within the meaning of the Postal Services Act 2000), or part of such a service, in the United Kingdom.

2

In Schedule 9 to that Act (exemptions), for Group 3 (postal services) substitute—

GROUP 3 — POSTAL SERVICES

1Item No

The supply of public postal services by a universal service provider.

2

The supply of goods by a universal service provider which is incidental to the supply of public postal services by that provider.

NOTES

1

Universal service provider” means a person who provides a universal postal service, or part of such a service, in the United Kingdom.

2

Subject to the following Notes, “public postal services”, in relation to a universal service provider, means any postal services which the provider is required to provide in the discharge of a licence duty.

3

Public postal services include postal services which a universal service provider provides to allow a person access to the provider's postal facilities, where such services are provided pursuant to a licence duty.

4

Services are not “public postal services” if—

a

the price is not controlled by or under a licence, or

b

any of the other terms on which the services are provided are freely negotiated.

5

But Note (4) does not apply if a licence duty requires the universal service provider to make the services available to persons generally—

a

where the price is not controlled by or under the licence, at the same price, or

b

where terms are freely negotiated as mentioned in Note (4)(b), on those terms.

6

In this Group—

  • licence” means a licence under Part 2 of the Postal Services Act 2000;

  • licence duty” means a duty imposed as a condition of a licence;

  • postal facilities”, in relation to a universal service provider, means the resources and systems deployed by the provider, for the purpose of discharging any licence duty to provide a universal postal service or part of such a service;

  • postal services” and “universal postal service” have the same meaning as in the Postal Services Act 2000.

3

The following provisions are omitted—

a

in section 96(1) of VATA 1994, the definition of “the Post Office company”, and

b

paragraph 22(3) and (4) of Schedule 8 to the Postal Services Act 2000.

4

The amendments made by this section have effect in relation to supplies made on or after 31 January 2011.