Tax credit for postage costs

Tax credit for postage costs

The tax authorities have issued a new circular published on the tax credit for publishers - a scheme that applies to not-for-profit organisations and foundations that are subject to the legal entities tax and send their campaigns as periodic print publications.

This increases postage costs significantly. However, there is a transitional arrangement in the form of a tax credit until 2026.

DSC has negotiated the most advantageous rate for your organisation. We have opted for a joint pricing strategy, which means that our rates are based on the total number of shipments of all our partner organisations. This allows us to offer your association the most competitive rates.

To give you a clear picture, below is a summary of the new tariffs.

For Large Shipments:

For Large+ Shipments:

These are items that cannot be processed automatically by the mail sorting machines (e.g. items with a pen).

Besides the tariff changes, there are some other important concerns:

• Weight: The maximum weight of the first tranche increases from 75 to 80 grams.
• Issue deadline: The default delivery time for magazines will be "Day + 3" (maximum). This means that if you drop off your magazine at bpost on Monday, it will be delivered on Tuesday, Wednesday or Thursday.
• Supplements: Until 30 June 2024, a maximum of 2 paper elements may be added to the shipment free of charge. From 1 July 2024, the supplements for all inserts will drop. The price of your shipment is now determined solely by the final weight and whether or not it can be processed mechanically. You can see the different weight classes and rates in the tables above.
• Additional discount: From 5,000 pieces onwards, an additional discount of 3.7% can be obtained on Round and Sequence v3, subject to sorting of mail items.
• Mail-id code: A barcode generated via bpost's online platform must be printed at each addressee's address.

The Belgian government and DSC assist your association through the following support measures:

• Government support: The Belgian government is intervening in the extra cost of postage paid in 2024 (2nd semester), 2025 and 2026. This is done on the basis of the rate applicable in 2023. The additional cost will be compensated in the form of a tax credit.
• Tax credit: To claim the refund, your association must file a tax return after the end of a financial year. The FPS Finance will process these returns annually from 1 October. All necessary supporting documents will have to be submitted in the event of any audits.
  This intervention by the government will keep postage costs at the level of 2023 postal rates until the end of 2026!
• Rate also applicable for other mailings of your association's magazines: Your association may use this advantageous postal rate of DSC for its other magazine campaigns.

Questions?

Do you have any questions about this scheme? Do not hesitate to contact with us. We will be happy to help you.