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HMRC are 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.
The amendments, which will take effect on 1 October, maintain the current treatment but are necessary to reflect changes to the postal services regime.
The new Act 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.
Revenue & Customs Brief 34/11 explains that, because VATA 1994, Sch 9 (Exemptions) Group 3 (Postal services) refers to a licence duty that will no longer exist after the regulatory changes are made, the taxman is updating the legislation to maintain the scope of the VAT exemption for postal services.
Similarly, Sch 8 (Zero rating) Group 8 (Transport) will reflect the fact that the new Postal Services Act has superseded the previous one.
The amendments are being made by the Postal Services Act 2011 (Consequential Modifications and Amendments) Order 2011 (SI 2011/2085).
