Tax on P&P

Emeralds

Hi,

Not sure if this is a silly question? I've ordered some goods from a UK company - the total is £800. I have been charged for delivery at £20.00. When I look at the tax - it included my delivery charge - so the tax has been based on the total of £820.

Is this right to be taxed with delivery?

grizzly1911

Emeralds wrote: »

Hi,

Not sure if this is a silly question? I've ordered some goods from a UK company - the total is £800. I have been charged for delivery at £20.00. When I look at the tax - it included my delivery charge - so the tax has been based on the total of £820.

Is this right to be taxed with delivery?

I have pondered that one too but I guess they are providing a service to you in posting it - they are adding value, so it must be taxed:rotfl:

AirlieBird

I assume you're talking about VAT. VAT on delivery charges is quite a complex area, but in general VAT on delivery charges should be applied at the same rate as the goods being delivered.

mlz1413

VAT has to be applied to any service offered by a vat registered company, so if you ordered your goods from a company that used the post office as a service then they have to charge VAT on it.

Only the post office can deliver goods exempt from VAT.


This princple also includes things like getting an MOT on your car through a garage and not an MOT centre. ie the garage offers the service of taking your car to an mot centre whilst they have it in for service, hence they have to apply VAT to the mot cost.

antrobus

The answer is to be found on:-

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000114&propertyType=document