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Can a company charge VAT on the 'low order fee' part of a purchase?


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I'm about to buy a (relatively) low cost item from a small-time online manufacturer who usually sell in large quantities to tradesmen.

 

They have applied a 'low order fee' to make my order up to £50. Are they allowed to do that? (I suspect yes).

 

I noticed in the Shopping Basket breakdown that VAT then also got applied to this fee - are they allowed to do that?

 

Thanks.

"Be reasonable, demand the impossible"

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