VAT on delivery charges (ecommerce)
Discussion
My head is hurting a little so I thought I'd ask the question here.
In the past I've purchased many things online, and nearly universally not been charged VAT on delivery (on the invoice, the VAT sum is before the delivery charge is added on) whether the item was vatable or not, and using many couriers.
I thought I'd double check this and HMRC seem to indicate that the VAT on the delivery should follow the VAT on the item, EG if it's a vatable item you should charge VAT on delivery.
They then go on to say if delivery isn't required under the contact, you don't have to charge VAT.
So, eCommerce boys, if you sell vatable items to customers, do you account for VAT on your delivery charges?
Full notice: http://customs.hmrc.gov.uk/channelsPortalWebApp/ch...
In the past I've purchased many things online, and nearly universally not been charged VAT on delivery (on the invoice, the VAT sum is before the delivery charge is added on) whether the item was vatable or not, and using many couriers.
I thought I'd double check this and HMRC seem to indicate that the VAT on the delivery should follow the VAT on the item, EG if it's a vatable item you should charge VAT on delivery.
They then go on to say if delivery isn't required under the contact, you don't have to charge VAT.
So, eCommerce boys, if you sell vatable items to customers, do you account for VAT on your delivery charges?
Full notice: http://customs.hmrc.gov.uk/channelsPortalWebApp/ch...
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