VAT success for the BCA and Mail Boxes Etc

The Business Centre Association and Mail Boxes Etc. have succeeded in their campaign to create a fairer market for all providers of virtual, mail forwarding and accommodation addresses.

At present, privately owned companies are operating at a commercial disadvantage because they must charge VAT for their virtual and mail forwarding services, whereas similar services provided by the Royal Mail are exempt from the tax.

After a year-long successful lobbying campaign by the BCA and Mail Boxes Etc., HMRC have now indicated the lifting of Royal Mail’s VAT exempt status for many Royal Mail services, including PO Box Services, the proposed date being 2nd April 2012.

Jennifer Brooke, Executive Director of the BCA said:
“The Business Centre Association welcomes HMRC’s decision to remove Royal Mail’s exempt status for VAT charges on PO Box Services, and this goes some way to smooth out anomalies in the market and creates a level playing field for businesses of all sizes.

BCA members operate under a strict Code of Conduct and BCA members are compliant with HMRC’s money-laundering regulations.

“Business centres and virtual accommodation providers support a large number of start-up companies and SMEs across the United Kingdom. Market conditions need to be as fair as possible if we are to help this entrepreneurial sector to drive the UK out of recession.
I would like to thank Mail Boxes Etc. for their support in this campaign.”

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