vat on online charged postage query


Frequent Poster
In my online store I charge 3.95 for delivery and use an post. I have up to now included this in turnover as standard rate of vat

An post charge me 3.96 + vat.

Someone (in a financial firm) said that even though an post has added vat and I claim that vat back, that by using an post and charging the same or lower than the net cost An post are charging me, then that delivery fee I receive is exempt from vat.

Revenue do not state any difference in an post services - just that the amount charged must be paid in full to an post.

If I was using a courier firm, then such treatment does not apply and that until revenue make a distinction between the different an post service, such interpretation is valid.

Do others see it that way? (basically am I due a substantial refund as postage fees are in excess of 50k a year)


Frequent Poster
Public postal services are exempt from VAT which would be the reason that you wouldn't have to charge VAT in the scenario on the revenue page I assume. If An Post are charging you VAT, is it some other kind of delivery that they're doing for you?