Postal insurance

[nevets]

Hi,

Just a quick one....

We are a VAT registered company and send a lot of stuff by courier. The standard rate includes limited insurance but from time to time we get asked by customers to upgrade it. This is not a problem but should we charge VAT on the insurance or is it exempt? Some couriers seem to charge VAT on insurance, others do not. Some include it as part of the total of the delivery and VAT is added to the total. I know general insurance is VAT exempt but what about postal insurance?

Thanks for any help on this

 

[nevets]

Has no one got an answer to this??

 

[lockyer]

This is where it gets confusing. Unless you are an insurance broker, agent or insurance company, and you are VAT registered, then you have to charge vat on the insurance

double check with your accountant though