Paying VAT on winning item!

geordie_joe

deanos wrote: »

You do pay VAT if its a vat registered business on post sent via royal mail

Thats odd, what make you think that?

I think you don't because it's in the list of zero rated VAT items. In fact I actually quoted from the list in my original post.

deanos

geordie_joe wrote: »

Thats odd, what make you think that?

I think you don't because it's in the list of zero rated VAT items. In fact I actually quoted from the list in my original post.

For an example go to https://www.svp.co.uk and say choose a memory card and then choose royal mail for shipping you will see VAT is added to the postage charge.

geordie_joe

deanos wrote: »

You do pay VAT if its a vat registered business on post sent via royal mail

Just had a look through my emails and I placed an order with wilkinsons last friday. According to the emailed invoice they sent me I didn't pay VAT on the £2.95 delivery by courier.

Also an Amazon purchase I made on the same day does not include VAT for the postage, and they use the royal mail.

geordie_joe

deanos wrote: »

For an example go to www.svp.co.uk and say choose a memory card and then choose royal mail for shipping you will see VAT is added to the postage charge.

Yes but just because a company is charging you VAT doesn't mean you should be charged it! Although I will acknowledge that svp are a respected company which I have used for many years.

The list of zero rated VAT items contains postal services, Wilkinsons (the one that has all the shops) and Amazon have not charged me VAT on postage.

There is also the point of does the ebay seller have sales over £62,000 per year? If not they should not be charging VAt on anything.

Time2Go_25

and from the Amazon site:

[FONT=verdana,arial,helvetica][SIZE=-1]VAT[/SIZE][/FONT]
[FONT=verdana,arial,helvetica][SIZE=-1]All prices shown include VAT (except books, which are zero-rated for VAT purposes). When a zero-rated VAT item, such as a book, is ordered together with a fully rated VAT item, such as a video, VAT must also be charged on the total cost of postage and packing.[/SIZE][/FONT]

geordie_joe

pdel61 wrote: »

and from the Amazon site:

[FONT=verdana,arial,helvetica][SIZE=-1]VAT[/SIZE][/FONT]
[FONT=verdana,arial,helvetica][SIZE=-1]All prices shown include VAT (except books, which are zero-rated for VAT purposes). When a zero-rated VAT item, such as a book, is ordered together with a fully rated VAT item, such as a video, VAT must also be charged on the total cost of postage and packing.[/SIZE][/FONT]

But they don't charge VAT on postage, so either that page is out of date or wasn't never right in the first place.

I think if they had to pay VAT on postage and are not charging it someone would have noticed. They only sell via mail order so every sale they make must include VAT for postage, if what you quoted is right. If they aren't charging VAT for the postage they will not be passing it on to the VAT office. Surely someone their would click on that amazon must use a postal service for every sale they make, but they are not paying VAT on them.

deanos

geordie_joe wrote: »

Just had a look through my emails and I placed an order with wilkinsons last friday. According to the emailed invoice they sent me I didn't pay VAT on the £2.95 delivery by courier.

Also an Amazon purchase I made on the same day does not include VAT for the postage, and they use the royal mail.

Just looked at Wilko and you do pay vat on postage, i added something for £10 and the VAT should have been £1.75 but it was £1.92 as VAT is included in the £2.95 postage charge

....


Crystal Storage Box and Lid Clear £10.00

Order SummaryItems Sub Total £10.00

Delivery £ 2.95

Total: £12.95
(including £1.92 VAT)

geordie_joe

Take a look at this site

http://www.grahampaul.com/accounts_vatguide_appendix1.htm

Under the heading "What items are VAT exempt?" you will find

- postal services, but only if supplied by the Post Office or their agents, and not by anyone else

It looks like if you use a private courier you have to charge VAt but not if you use the PO or it's agents. SVP use a courier, everything I have every bought from amazon has been delivered by the PO

Wilkinson say my good will be delivered by their courier tomorrow, so I don't really know who will delivery it.

geordie_joe

deanos wrote: »

Just looked at Wilko and you do pay vat on postage, i added something for £10 and the VAT should have been £1.75 but it was £1.92 as VAT is included in the £2.95 postage charge

....


Crystal Storage Box and Lid Clear £10.00

Order SummaryItems Sub Total £10.00

Delivery £ 2.95

Total: £12.95
(including £1.92 VAT)

You are right, but Wilkinsons say a courier delivers their good, so It's still right that if the PO delivers them you can not charge VAT.

nick74

The point here is that when you buy goods from Amazon, or whoever, you personally are paying postage charges to Amazon, not to Royal Mail.
Amazon may be paying postage charges to Royal Mail, but thats up to them!

As a general rule, if you buy standard rated goods then the postage charges on them are also standard rated.
If you buy zero rated goods then the postal charges on them are also zero rated.

Whether the package is delivered by Royal Mail or not is irrelevant as far as the VAT rate charged to the final consumer is concerned.