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IS it legal to charge vat on delivery

15 replies

jellyjelly · 25/04/2006 20:06

If not do you know what law?

OP posts:
SenoraPostrophe · 25/04/2006 20:07

yes - it is compulsory in fact if there is vat on the items being ordered. But you don't pay vat on delivery if there is no vat on the order. it's a complete pita when you're writing the logic for an ecom site!

jellyjelly · 25/04/2006 20:13

I didnt think a delivery charge should have vat not the goods.

The goods i understand but not the delivery

OP posts:
Janh · 25/04/2006 20:14

What about VAT on postage???

Hate paying that.

SenoraPostrophe · 25/04/2006 20:22

jellyjelly - you'll have to translate that.

it's never ocured to me to be annoyed about it actually. but then I assumed all postage had vat on it in the first place.

jellyjelly · 25/04/2006 20:26

vat on goods i agree to but the vat has been increrased buy

x at29.30
shipping at 4.99
then
vat 6.00 (this is on the total amount not just the goods.

Does this make sense now.

For example when you shop at tesco you pay 5.00 delivery and vat on the goods but doersnt include postage/delivery.

OP posts:
drosophila · 25/04/2006 20:27

VAt is chargeable on supply of services (Delivery is a service)as well as supply of goods. The trader must be VAT registered though (you would be surprised how many who arn't who charge VAT). USed to be VAT inspector.

drosophila · 25/04/2006 20:29

Was it posted or delivered?

SenoraPostrophe · 25/04/2006 20:30

well yes, as I said, you have to charge vat on the delivery if you are charging any vat at all on the goods being delivered.

it means that if you buy 100 quids worth of baby clothes from tesco there will be no vat on the delivery. but if you order 100 quids worth of baby clothes and a pie, you will pay vat on delivery.

SenoraPostrophe · 25/04/2006 20:31

as it goes - you will have paid vat on the tescos delivery - it's just they didn't bother to break it down for you.

SenoraPostrophe · 25/04/2006 20:32

you have to charge vat on delivery even if you use royal mail, drosophila.

Janh · 25/04/2006 20:35

lol at 100 quid of baby clothes and a pie Grin

SenoraPostrophe · 25/04/2006 20:41

mmm, pie.

we didn't stock up enough last time we were over, and I haven't had time to cook any lately. can you tell?

drosophila · 25/04/2006 20:43

\link{http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageAboutUs_ShowContent&id=HMCE_CL_000114&propertyType=document#P34_2182\VAT on delivery}. Nothing is ever straight forward. Postage via Royal Mail is exempt from VAT.

SenoraPostrophe · 25/04/2006 20:47

from that site : "However, if any delivery charge you make to your own customers includes the cost of stamps you buy from the Post Office you may have to charge VAT on the whole amount including the cost of those stamps." - merchants do have to charge vat, but you don't pay it if you go direct to the post office. the "may" is because you don't have to charge vat if there is none on the goods.

drosophila · 25/04/2006 20:50

As I said VAT is rarely straight forward.Grin

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