Royal Mail has posted an announcement on its website stating that the following products and services, including all bulk products, will become liable to VAT from 2 April 2012: 

• Advertising Mail (70, 120, 700 and 1400)
• Automated Standard Tariff Large Letter
• Cleanmail
• Cleanmail Advance
• Cleanmail Plus
• Do not redirect
• First and Second Class Standard Tariff Account mail 
• Mailsort (70, 120, 700 and 1400)
• Ministerial Pouch Services 
• Packetpost
• Packetsort
• Packetsort Plus
• Packetsort Returns
• PO Box Services
• Presstream
• Redirect Diversion
• Response Services (inc licence fees) 
• Sustainable Mail
• Walksort

The DMA is in discussions with Ofcom and Royal Mail to understand the background to this announcment and clarify the position. We will keep you up to date with events as they develop.