VPOST4250 - Scope of the exemption: services covered by the Universal Services Obligation (USO)
As the public postal services, Royal Mail is obliged under the terms of its licence or, from 1 October 2011, the provisions of a Universal Postal Service Order and Regulatory Conditions made under the Postal Services Act 2011 (PSA 2011, VPOST3500) to provide a universal service, known in the UK as the USO. This includes services for letters posted individually (such as first and second class mail) and including a registered and insured service and incoming and outgoing services for letters posted from and to addresses outside the UK. »Ê¹ÚÌåÓýapp licence or PSA 2011 requires such services to be provided at affordable prices determined in accordance with a public tariff that is uniform throughout the UK. All services covered by the USO remain exempt from VAT.