On January 31st 2011, the Royal Mail introduced VAT to a number of their franked products.
These products include special delivery, internationally signed for in the EU only and standard parcels with additional compensation. This has resulted in the Royal Mail being unable to identify the product being sent and the VAT payable. This also means that businesses are unable to reclaim the VAT on these items.
How Smart Franking Machines can Help
Smart franking machines are able to identify and calculate the VAT. Invoices can then be raised for VAT from either the company the machine comes from or the Royal Mail.
Machines use inkjet technology using blue ink (red ink being phased out) which Royal Mail sorting machines can read more clearly enabling faster postal delivery.
Integral scales and smart meters on the machine ensure correct postage at all times and you can access a wider range of Royal Mail products resulting in extra money saving.
Smart machines are linked via the internet which not only ensures easy top-up, but that any updates or new services available can be downloaded in a swift and secure manner. Most smart machines also have pin access which effectively controls who can use the machine.