Ebay charging large amount of VAT to buyer on Digital gift card.

GDB2222

RFW said:

savergrant said:

Some postal services are vatable, some aren't. It is not related to whether the contents are vatable.

HMRC would beg to differ.

An additional charge for delivery will follow the liability of the goods.

The supplier of the delivery service will need to charge VAT on the service they are selling to the OP. That's assuming they are VAT registered, which of course ebay and all the large delivery companies are.  

RFW

GDB2222 said:

The supplier of the delivery service will need to charge VAT on the service they are selling to the OP. That's assuming they are VAT registered, which of course ebay and all the large delivery companies are.  

There's a little difference here. The seller cannot charge VAT on shipping if the item is zero rated. So in the case of the OP, where the item was zero rated then there should be no VAT charge on the postage. It is irrelevant if the person sending the item has been charged VAT by the courier. They can pass on the VAT charge but they can't list it as VAT.

Some more info on here. https://cangafltd.com/vat-on-postage/