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.