S Slash Registered User Messages 329 7 Sep 2010 #1 If a company is sending a product by post, and charging the Customer for P&P, does it charge VAT on the P&P, and, if so, at what rate? Thanks.
If a company is sending a product by post, and charging the Customer for P&P, does it charge VAT on the P&P, and, if so, at what rate? Thanks.
D DB74 Registered User Messages 1,701 7 Sep 2010 #2 I'm not 100% on this but my understanding is: If you are passing on the exact cost of the postage directly to the customer then there is no need to charge VAT as it is regarded as outlay If however you are charging a different amount to the cost to you then you have to charge VAT. AFAIK the rate is the Standard (21%) rate I am very open to correction here though
I'm not 100% on this but my understanding is: If you are passing on the exact cost of the postage directly to the customer then there is no need to charge VAT as it is regarded as outlay If however you are charging a different amount to the cost to you then you have to charge VAT. AFAIK the rate is the Standard (21%) rate I am very open to correction here though
G Graham_07 Registered User Messages 2,889 7 Sep 2010 #3 DB74 said: I'm not 100% on this but my understanding is: If you are passing on the exact cost of the postage directly to the customer then there is no need to charge VAT as it is regarded as outlay If however you are charging a different amount to the cost to you then you have to charge VAT. AFAIK the rate is the Standard (21%) rate I am very open to correction here though Click to expand... I've seen a number of situations on invoices where some suppliers do charge and others don't charge VAT on P&P however the above reasoning makes sense.
DB74 said: I'm not 100% on this but my understanding is: If you are passing on the exact cost of the postage directly to the customer then there is no need to charge VAT as it is regarded as outlay If however you are charging a different amount to the cost to you then you have to charge VAT. AFAIK the rate is the Standard (21%) rate I am very open to correction here though Click to expand... I've seen a number of situations on invoices where some suppliers do charge and others don't charge VAT on P&P however the above reasoning makes sense.