VAT on P&P?

natscat84

I just tried to order some goods off a website. Everything was fine until I went to checkout and found they'd charged me VAT on both goods and the P&P.

Can they charge VAT on P&P? I've never, ever seen it on any other site, which is why I'm asking. Also, this site has no notice saying that prices are exclusive of VAT either, so I got a bit of a shock at check out!

le_loup

Yep. It's the supply of a service ... vat-able.
What you MAY have seen before is postage stamps which are not.

natscat84

Thanks. I was just curious since I have never seen it before - I guess sites I usually use have included the VAT in the quoted price (which seems most sensible) - I got a bit of a shock when I thought the goods I was going to order were £20-ish and the final quoted price including P&P and VAT was closer to £30!!!

AirlieBird

It all depends on whether the goods being purchased are VATable and whether delivery is required as part of the contract (.i.e. the goods have to be delivered) or is a separate contract. If delivery is required as part of the contract then it is liable at the same rate as the goods being purchased. If it is a separate contract then it is liable at the standard rate.