Hello again, I am sorry to be a pain but there are few things I don't quite understand about Vat. I just registered this month as will be exporting goods to EU countries and I quite understand how to go about Vat in this area as it is 0% within European Countires. My problem is how to invoice people here in the UK. I sell on ebay and trying to develop my own website to sell through. Now, do I put Vat on the top of my postage cost? What I mean is for example, someone buys something for £2.99 on ebay plus they pay £1.99 postage, so they pay total £4.98. How do I go about the invoice? Do I put £2.60 + £0.39 vat plus £1.99 postage? Or should I put £4.34 + £0.64 vat? When I pay at the post office they obviously dont charge me vat so I can't claim it back. If I have to pay vat from the postage then I would have to pay more money on vat return. I am really new to this and I do appreciate your help guys. Thank you very much.