VAT ON COURIER CHARGES?

[Adriano Di Maria]

Hi
I have a website which sells foods and wine.
Now I have been getting very confused with VAT on the courier charges.
At the moment I do include VAT on the courier charges, however when I check all other companies and competitors the VAT does not show on their invoices.

Can someone explain to me if I need to charge VAT on courier costs or not?

Kind Regards
Adriano

 

[Mr D]

Your courier does turnover in excess of £84k a year so is registered for VAT and must charge VAT on its services.

The places you checked - were they VAT registered and were their goods / services subject to VAT?

You charge VAT because you are:
1. Vat registered.

AND

2. The goods are subject to VAT.

That has nothing to do with whether you get charged VAT.

 

[Adriano Di Maria]

Your courier does turnover in excess of £84k a year so is registered for VAT and must charge VAT on its services.

The places you checked - were they VAT registered and were their goods / services subject to VAT?

You charge VAT because you are:
1. Vat registered.

AND

2. The goods are subject to VAT.

That has nothing to do with whether you get charged VAT.

Thanks for the reply, I understand we get charged VAT on the courier costs - its passing the VAT on is what I'm getting confused with.

yes all of our competitors are larger companies than us so they will be VAT registered.

So if I were to sell a parcel containing none Vatable goods I do not have to charge VAT on the courier cost?
AND if the goods are Vatable I have to charge VAT?

What if the parcel is mixed Vatable and none vatable goods?

or do I have to charge VAT on all 3 options because I am VAT registered.

Kind Regards
Adriano

 

[Scalloway]

VAT on delivery follows the VAT status of the goods being sold. The rules are here

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

 

[Raw Rob]

So if I were to sell a parcel containing none Vatable goods I do not have to charge VAT on the courier cost?
AND if the goods are Vatable I have to charge VAT?

Yes, that's basically correct as long as delivery is part of the contract and not a separate contract.

What if the parcel is mixed Vatable and none vatable goods?

As far as I know, you are allowed to charge VAT on the portion of the courier costs which is for the VATable items and not charge VAT on the portion for the non VATable items, although personally I just charge VAT on the whole amount in this situation as it is quite a small amount and our accounts software can't work it out automatically!

 

[lesvatadvice]

If you offer delivery as an option it is standard rated when you charge it to customers.
If delivery is included in your prices, it follows the liability of the goods you sell.

 

[Alcohol Sales On-Line]

Hi Adriano,
VAT needs to be charged on the transport service.

 

[Mr D]

Hi Adriano,
VAT needs to be charged on the transport service.

You mean like lesvatadvice says.