VAT on Delivery Charges

Discussion in 'Accounts & Finance' started by raredvd, Jun 6, 2008.

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  1. raredvd

    raredvd UKBF Newcomer Free Member

    33 1
    Yes it seems to be the case! I rang them and they confirmed this... I'm still confused as to why other retailers (who are well established and obviously understand how to do their accounts) don't charge VAT on delivery.

    Frustrating...
     
    Posted: Jun 6, 2008 By: raredvd Member since: Feb 20, 2008
    #21
  2. Top Hat

    Top Hat UKBF Ace Free Member

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    Tell the VAT office
     
    Posted: Jun 6, 2008 By: Top Hat Member since: Mar 3, 2005
    #22
  3. raredvd

    raredvd UKBF Newcomer Free Member

    33 1
    How do I do that?
     
    Posted: Jun 6, 2008 By: raredvd Member since: Feb 20, 2008
    #23
  4. Top Hat

    Top Hat UKBF Ace Free Member

    2,182 172
    I guess you phone them up and say that your confused by how X are doing the vat on delivery.

    When I had a VAT inspection the first thing I was asked was 'Do I charge VAT on delivery' so I guess they are pretty hot on it.
     
    Posted: Jun 6, 2008 By: Top Hat Member since: Mar 3, 2005
    #24
  5. davebrown

    davebrown UKBF Contributor Free Member

    38 4
    VATable goods = VAT on delivery. Not rocket science. If a competitor is not charging it, they're getting it wrong.
     
    Posted: Jun 15, 2008 By: davebrown Member since: Jun 15, 2008
    #25
  6. yorkshirejames

    yorkshirejames UKBF Ace Free Member

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    Posted: Jun 16, 2008 By: yorkshirejames Member since: Mar 2, 2006
    #26
  7. 3pic

    3pic UKBF Newcomer Free Member

    609 182
    Its not exactly VAT fraud (deliberate intent, mens rea and all that). More a case of a supplier not bothering to check the liability of their supply. Happens a lot, that's why this forum is full of VAT questions on e-services, international transactions, place of supply, etc.

    The suppliers, when visited by HMRC, will have to pay over the VAT they have not charged going back three years so these suppliers will eventually be caught out and they will have to stump up the cash, plus interest/penalties for not paying the VAT over at the correct time.

    Still worth mentioning it to the local VAT office of course to level the playing field!:)
     
    Posted: Jun 16, 2008 By: 3pic Member since: Jun 20, 2007
    #27
  8. SouthernBusiness

    SouthernBusiness UKBF Regular Full Member

    204 5
    What about a supplier delivering goods that include VAT and some goods that are VAT free? Should they also charge VAT?
    So far they total the goods then list delivery and VAT [calculated from goods excluding delivery]. Then total
     
    Posted: Jun 17, 2008 By: SouthernBusiness Member since: Dec 1, 2007
    #28
  9. 3pic

    3pic UKBF Newcomer Free Member

    609 182
    Assuming the delivery consists of two different items (one zero, one standard rated) then the delivery charge should be apportioned between standard and zero rated VAT, depending upon the ratio of standard and zero rated items being delivered.

    In reality, this splitting does not always take place and VAT is applied to everything. Of course, HMRC have no issue if you want to charge VAT on something that doesn't require it. They will have an issue if you try to zero rate the whole delivery becuase there is a small book in the overall package!.
     
    Posted: Jun 17, 2008 By: 3pic Member since: Jun 20, 2007
    #29
  10. imayne

    imayne UKBF Newcomer Free Member

    72 1
    Hi. I wanted to reply to this post as its the same with me.

    I totally understand that I need to 0-rate any goods despatched within the EU once the buyer provides a valid VAT number. But what about shipping charges? Should I charge VAT on shipping...to France?


    Ex: 2 eggs (£10 + 0-rated VAT)
    DHL shipping (£25 + VAT at 20%)
    Total: £10 + £30


    Regards
     
    Last edited: Aug 25, 2011
    Posted: Aug 25, 2011 By: imayne Member since: Sep 22, 2010
    #30
  11. 3pic

    3pic UKBF Newcomer Free Member

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    Same rules apply, the courier/postage charge follows that of what is being posted, so you'd zero rate your entire charge to the French customer and reclaim the input tax from the courier (assuming you're not on flat rate scheme where you cannot reclaim your input tax).
     
    Posted: Aug 26, 2011 By: 3pic Member since: Jun 20, 2007
    #31
  12. imayne

    imayne UKBF Newcomer Free Member

    72 1
    Thanks for your reply.

    Ive contacted HMRC, this morning, and was told the same thing; to zero-rate the total (under conditions which I met).

    Another question...what about Australian businesses? Same zero-rate on goods/shipping? If this is confusing, I will have to give HMRC another ring ;)
     
    Posted: Aug 26, 2011 By: imayne Member since: Sep 22, 2010
    #32
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