Paying VAT on winning item!

geordie_joe

nick74 wrote: »

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.

So why is delivery by the PO or it's agents listed as zero rated VAT?

It does not matter whether the item being sent is zero rated as you are atill using the service, but the service itself is zero rated!

TKPeters

geordie_joe wrote: »

Not according to everything I have read, it all points to you not being able to charge for PO service and those of their agents.

If you give me your company name I will pass it on to the VAT man and ask him.

No malice intended, just trying to find out if you are willing to stand by your claim.

Company Name : Express PC's Ltd
Company Reg Number : 4881265
Vat Reg Number : GB 842 3042 59

Trading Address
Unit 2
Byron House
Hall Dene Way
Seaham Grange Industrial Estate
Seaham
County Durham
SR7 0PY

Previously of
Unit H12
Felling Business Centre
Green La
Gateshead
NE10 0QH

Gateshead Trading Standards has a very big file on [SIZE=-1]Lee Anthony Metcalf / [/SIZE]Express PC's Ltd

meester

geordie_joe wrote: »

So why is delivery by the PO or it's agents listed as zero rated VAT?

It does not matter whether the item being sent is zero rated as you are atill using the service, but the service itself is zero rated!

I have alread explained this (@10:05pm above), please do not post any more without reading what has already been written.

HMRC guide here

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_InfoGuides&propertyType=document&id=HMCE_CL_001596#P2401_197529

See 25.1

Please remember that HMRC WANT you to charge VAT on as many thing as possible, so the scope of zero-rated disbursements is extremely limited, and postage on sales is not one of them.

meester

TKPeters wrote: »

Gateshead Trading Standards has a very big file on [SIZE=-1]Lee Anthony Metcalf[/SIZE]

I would stick with complaining about the breach of the Pricing Order on the VAT.

Not good.

geordie_joe

TKPeters wrote: »

You can verify VAT numbers online
http://ec.europa.eu/taxation_customs/vies/vieshome.do?selectedLanguage=EN

Oh dear, just fed the VAT number in question into this site and it came up "yes it's a valid VAT number" but didn't say which company it belonged to. Which just strengthens my belief that you can just copy a vat number from any web site and claim it as your own.

If you get caught you'll regret it, but if you only want to fool your customers into thinking you are registered for VAT and think no further than that then it can be done.

TKPeters wrote: »

Not true if the postage cost is P&P, as you can charge VAT if someone is paid to pack/handle the item.

Yes but you can't charge vat if the delivery is by the PO or it's agents. There for if vat is applied to the total P+P charge and the item is delivered by the PO the company is in the wrong.

meester

geordie_joe wrote: »

Yes but you can't charge vat if the delivery is by the PO or it's agents. There for if vat is applied to the total P+P charge and the item is delivered by the PO the company is in the wrong.

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READ THE BLOODY THREAD !!!!!!!

Time2Go_25

geordie_joe wrote: »

No, I am here to be educated and if I am wrong I would rather know.

In which case please read:

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000114&propertyType=document#P34_2182

geordie_joe

meester wrote: »

I have alread explained this (@10:05pm above), please do not post any more without reading what has already been written.

I have also explained and supplied links, please do not reply until you have what has already been written.

Please also do not reply until you have visited this page

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/DG_4015895?cids=Google_PPC&cre=Money

and followed the link which says "A full list of zero rated VAT items (opens new window)" and looked at item "Group 3 - Postal services"

The conveyance of postal packets by the Post Office company is exempt from VAT.

If the PO do not charge you to post a parcel then you can not charge a customer VAT for the money you paid to the PO to deliver the parcel.

If you paid VAT on the packaging then you can pass that on to the customer, if you paid someone to package the item up then you can charge VAT for that, but if you paid the PO £1 for posting the package you cannot charge the customer 117.5 pence and claim the 17.5 pence is VAT.

My point is if the P+P is £5 but the actual postage, by the PO is only £2 then they can only charge VAT on the other £3 and not the £2 that they paid to the PO.

meester

pdel61 wrote: »

In which case please read:

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_ShowContent&id=HMCE_CL_000114&propertyType=document#P34_2182

The guide to disbursements that I already posted is a bit clearer on this:

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_InfoGuides&propertyType=document&id=HMCE_CL_001596#P2401_197529

and even better in the same document

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_InfoGuides&propertyType=document&id=HMCE_CL_001596#P675_54998

When you supply goods,
If you …

send goods by post

Then the…

charge made to you by the Post Office is exempt, but your charge to your customer is taxable even if it is exactly equal to the charge made to you by the Post Office.

geordie_joe

meester wrote: »

The guide to disbursements that I already posted is a bit clearer on this:

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_InfoGuides&propertyType=document&id=HMCE_CL_001596#P2401_197529

and even better in the same document

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal?_nfpb=true&_pageLabel=pageVAT_InfoGuides&propertyType=document&id=HMCE_CL_001596#P675_54998

When you supply goods,
If you …

send goods by post

Then the…

charge made to you by the Post Office is exempt, but your charge to your customer is taxable even if it is exactly equal to the charge made to you by the Post Office.

Unfortunately you didn't read far enough.

However,
If…
the terms of your agreement with your customer for the supply of the goods require you to deliver or post them to the customer

and

Then
there is no separate supply of delivery or postage. This applies even if you show a separate charge.

This means that you make a single supply of delivered goods and, if the supply of the goods is zero-rated, then the zero-rating also covers the delivery or postage. This applies to most mail order transactions, but not if a delivery service is available at an extra charge for customers who request it.

In other words if you have a shop and a customer rings up and asks you to post the item to them you have to charge VAT on the postage. But if your business is mail order and you do not state that the customer can collect the item then you can not charge VAT for PO delivery.

To put it simply, if your normal business practice is for customers to come to you and buy, but you provide delivery as an extra service then you can charge for that extra service.

if your normal business practice is to deliver by post and your customers don't have a choice then you posting the item is not an extra service you provide and you can't charge VAT for it.