VAT on p & p delivery charge

Magog

I was about to order something which is cheaper online than in retail stores when I noticed - yet again - that VAT was not added to the item alone, but right at the end to include postal and packing.
Does p&p or courier delivery count as a VAT chargeable service?
Info gratefully received.

greyteam1959

Courier companies have to charge VAT.
Royal Mail DOES NOT have to charge VAT on parcel delivery.

sassyblue

Magog wrote: »

I was about to order something which is cheaper online than in retail stores when I noticed - yet again - that VAT was not added to the item alone, but right at the end to include postal and packing.
Does p&p or courier delivery count as a VAT chargeable service?
Info gratefully received.

It's chargeable on those items because VAT is paid on boxes and packets used to pack the items and also on the courier charge itself. However it shouldn't really be charged if the Post Office is used as a courier, they're VAT free.

HTH

Enterprise_1701C

We were told that we had to charge VAT on P&P because we were "reselling" the service.

McAzrael

Full details here: http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageLibrary_PublicNoticesAndInfoSheets&propertyType=document&columns=1&id=HMCE_CL_000114#P41_3217

In short, if delivery is part of some other contract (such as the sale of goods by mail order) then VAT is at the same rate as the goods delivered.