VAT on postage?

[spickney2000]

This was just a general question. If I am selling an item with postage, how do I add the VAT on the total?

item + postage = (item + postage) x VAT

or

item + postage = (item x VAT) + postage

Advice would be greatly appreciated.

 

[DontAsk]

The first one. Or even

item x VAT + postage x VAT

You charge VAT on postage, even though you don't pay VAT when buying the postage from Royal Mail.

 

[spickney2000]

The first one. Or even

item x VAT + postage x VAT

You charge VAT on postage, even though you don't pay VAT when buying the postage from Royal Mail.

Thanks for the feedback.

 

[MyAccountantOnline]

It's worth having a read of this -

Postage, delivery and direct marketing (VAT Notice 700/24)

Find out how to apply VAT to charges for postage, delivery services and how to treat direct marketing services involving distribution of printed matter.

www.gov.uk

 

[Paul Kelly ICHYB]

Used to be you charged VAT on postage if the main item was VATable (and was more than the cost of postage!).

This assumes that you are VAT registered!

 

[DontAsk]

Used to be you charged VAT on postage if the main item was VATable (and was more than the cost of postage!).

This assumes that you are VAT registered!

I think you are correct, but the OPs example was of an item with VAT.