Invoice with zero-rated goods and standard VAT on delivery? (FreeAgent)

[Digimem]

Hi all,

I am trying to reconcile a supplier invoice on FreeAgent.
The invoice was for zero-rated goods but the delivery charge as standard rated VAT on it.

Which VAT category am I supposed to select for this invoice?

Many thanks.

 

[Scalloway]

How to split a bank transaction between two categories. Can you get this to work for an invoice? By the way if the goods are zero rated delivery should be too.

https://support.freeagent.com/hc/en...lit-a-bank-transaction-between-two-categories

 

[Philip Hoyle]

You wouldn't normally split out the costs of postage/delivery to get the product to you - it's just part of the cost of the item you've bought. Re the VAT, you should select the "amount" line in the VAT box in Freeagent, then you can enter the VAT as charged on the invoice, which will neither be 20% or 0% with it being a split supply for VAT purposes.

 

[Digimem]

Thanks for the replies guys.

I'm going to query this invoice with the supplier before attempting to reconcile using your suggestions. I didn't realise that zero-rated goods should also have zero-rated delivery, not sure if it was an oversight on their side or not.

 

[Scalloway]

If need be you can direct them to this VAT notice.

https://www.gov.uk/guidance/vat-on-postage-delivery-and-direct-marketing-notice-70024