Postage and VAT

[Glassman]

VAT shouldn't be added after the addition of postage, should it?

Online stationery people's website checkout shows total (for a couple of items); postage: 5.99, then vats the total of that???

[Broccers]

Only royal mail are exempt so if they are using someone else then its vatable.

[anonymous-user]

We sell online, if you charge the customer the exact amount that Royal Mail charge then VAT need not be aplied, however of like most you have a P&P charge that is say £3.50 but the postage costs £0.70 then VAT must be applied to the £3.50.

[Brown and Boris]

Dave_ST220 said:

We sell online, if you charge the customer the exact amount that Royal Mail charge then VAT need not be aplied, however of like most you have a P&P charge that is say £3.50 but the postage costs £0.70 then VAT must be applied to the £3.50.

I didn't know that!

We have always just added the postage at cost price to the invoice and then added VAT on it all. Probably simplier because postage is a bit of a wet finger in the air for us on occasions. We often get it wrong when the invoice goes with the goods, albeit by 20 or 30p (those post offce scales must be weighted!).


At our last VAT inspection 'the man' was most upset that we had been reclaiming the VAT on postage we had paid. We now know better.