VAT on delivery

[SILICONEKID340HP]

Just received some car parts and noticed they have charged me VAT for the postal services !is this correct ..I thought i just had to pay vat on the car parts cheers

[marshalla]

Chapter and verse : http://customs.hmrc.gov.uk/channelsPortalWebApp/ch...

Royal Mail postal services are exempt, all others are VATable. However, if the retailer's P&P charge includes an element for actually providing the packing materials and/or putting the goods into the packaging, VAT may also be payable on the RM service.

[daemon]

Basically the supplier of the goods is offering a 'service' by posting the goods to you therefore they are VAT chargeable, even though if they used the Royal Mail, they werent charged VAT.

[5705]

It's not the business' choice. Just to clarify: the Post Office charges no VAT for sending the business' post, but HMRC still forces the business to charge the customer (the OP) VAT on the full value of the postage.

[Jon Ison]

Royal mail do now charge vat on some ppi products.