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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 16045
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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VAT UK Enquiry i wanted to ask, i charge £5 for delivery so

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VAT UK Enquiryi wanted to ask, i charge £5 for delivery so i pay £1 vat to HMRChow do i charge the customer so that the fee includes the VAT so if i charge £5 how do i charge £6 but then not get added £1.20 on top of the fee
Sam

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

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HI

There is no VAT on posting

Thanks

Sam

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Customer: replied 12 days ago.
I'm confused inwas advised I have to pay vat on deliveryFor example a customer pays me £50 for a pair of shoes i pay £10 VAT to HMRC he then pays 5£ for delivery which I am charged by royal mail the same fee how much vat is due on the 5£ delivery fee?Thanks
Customer: replied 12 days ago.
I hope the above scenario makes senseThanks
Customer: replied 12 days ago.
Please could you let me know and point me towards the legislation where it says I do not need to pay itThanks

Link here re postage and its exempt supply

https://www.gov.uk/guidance/vat-on-postage-delivery-and-direct-marketing-notice-70024

Thanks

Sam

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Customer: replied 12 days ago.
Which section in that link is it?Thanks

Hi

The whole, notice is on post and packaging

Thanks

Sam

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Customer: replied 12 days ago.
I understand im trying to make sense of it which part states vat is not chargeable on posting
Customer: replied 11 days ago.
Just following up on thisThanks

Hi

The first paragraph states

1.3 Postal charges and VAT exemptions

Postal services provided by the Royal Mail Group Limited under its remit as the universal postal service provider in the UK are exempt from VAT if they’re subject to price and regulatory control. This exemption does not extend to similar services provided by the Royal Mail or other suppliers.

You do not indicate that other services are provided for delivery but if they are you are directed to

Then the next paragraph talks about actual delivery services at 2.1 then a table simplifies this further at 2.2

Thanks

Sam

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Customer: replied 11 days ago.
May I request a phone call with you?Thanks

Hi

Of course but I cannot see I can add anything further to my responses already

Thanks

Sam

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Customer: replied 9 days ago.
i would like a phone call that would be great i am booking it in now!Thank s

Hi

No request has come through

Thanks

Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 16045
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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Customer: replied 8 days ago.
hi have requested a phone call im not sure if the write number has come up but please do contact me
Customer: replied 7 days ago.
hey i have not received the phone call when will i be getting this?

Hi

No request has come through

Thanks

Sanm

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Customer: replied 7 days ago.
It says it has been accepted...

HI

Not this end I am afraid so unable to connect with you

Thanks

Sam

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Customer: replied 7 days ago.
Ok will contact Ja to get them to sort it outThanks

Hi

I will raise a report as well for you

Im so sorry for the inconvenience

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Customer: replied 2 day ago.
Heynot sure still no answer from them. So can we just go over this in writing on here so you say all delivery is excluded from VAt that is charged to customers
Customer: replied 2 day ago.
I deliver goods to my customer and make an additional charge an additional charge for delivery will follow the liability of the goods.The important test is whether delivery is included in the contract. You’re making a single supply of delivered goods if, under the contract, you must deliver the goods to a place specified by the customer. This might include the customer’s:
own address
friends or relatives
own customers.The position is not affected by whether the charge for delivery is separately itemised or invoiced to the customer. In either case there is a single supply of delivered goods for which the VAT liability is based on the liability of those goods.does this case relate to me i am an ecommerce business?

I concur with my colleague's opinion.

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Customer: replied 1 day ago.
HeyWhat do you mean sorry. I don't need to pay vat on delivery charges correct

Yes, you do, but at a rate of 0%.

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Customer: replied 1 day ago.
only to people in UKI sell goods for 63£ i pay vat of £12 60 for the sale of goods and 4.50 delivery i don't pay any vatOn vat return I write total sale is 67.50 but only pay 12.60 vat is this correct

Not on the delivery charge if it is separately invoiced.

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Customer: replied 18 hours ago.
we are an ecommerce businesswe charge £63 for goods then delivery on top of that as an extraso i do not put the cost of delivery down in sales is this correct where do i put the cost of deliveries down?

You put it it trough a suspense account clearing the original expense of despatching the item sold.

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Customer: replied 18 hours ago.
can i contact you via phone call so you can explain this to me i am very confused

Sorry, I do not do telephone calls any more, they are no longer cost effective. When you send the item out you charge despatch costs to a suspense account which you clear when you raise the invoice.

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