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to resent paying VAT on the postage for a purchase?

(4 Posts)
DutchOma Tue 07-Jun-11 19:51:17

I bought a hank of wool from a certain firm which came to £6.40. Postage £1.58. VAT at 20%: £1.60. Now, I know that VAT is charged at 20% and I would not have minded paying £1.28 on the purchase of the wool. But £1.60? That is adding the price of the wool and the postage together and then charging £20% and then rounding it up to £1.60. Surely that's not fair? Or AIBU?

FabbyChic Tue 07-Jun-11 19:53:22

The government states that all those who are VAT registered charge VAT on the total amount charged that includes postage. Sorry if you don't like it write to the prime minister.

HopeEternal Tue 07-Jun-11 19:55:32

As I recall, postage is only exempt from VAT if you are the one buying the stamp and posting the letter / parcel. Where a trader passes on this charge it becomes part of what they are selling to you and therefore subject to VAT at the standard rate.

DutchOma Tue 07-Jun-11 20:06:30

You are obviously right and know what you are talking about, but it seems very unfair to me. As Fabby says, complain to the Prime Minister.

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