Vat added to the postage charge

[thebigdaddy]

Hi Guys,

 

I ordered things from a marine store in England (I am in Scotland) and going by the receipt, I have paid vat on the postage, is this correct

 

The store lists the item, then postage, then vat and the total, if I add it up the item + postage, the vat adds up to the two prices, if I add up the item and vat then postage I get a different total.

 

I am waiting for the delivery first, before I dispute this, as I need the item I bought, I know its only £1.66, but I feel as though I have been conned. I will post a copy of the receipt once the delivery arrives.

 

cheers

 

James

[Conniff]

HMRC says:

 

Postal services provided by the Post Office are exempt from VAT, but this exemption does not extend to similar services provided by other suppliers, even where this might be seen as being in direct competition with the Post Office. However, if any delivery charge you make to your own customers includes the cost of stamps you buy from the Post Office you may have to charge VAT on the whole amount including the cost of those stamps.

[thebigdaddy]

Hi Conniff

 

cheers for your reply, looks like I stand corrected, I suppose it is true, you learn something new everyday.

 

thanks

 

James

[pcmaster2001]

i didnt know that

[Conniff]

Of course if the company doing the selling is not yet VAT registered, then no Vat. But otherwise, they have no choice.