VAT on delivery charges (ecommerce)

VAT on delivery charges (ecommerce)

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jon-

Original Poster:

16,511 posts

217 months

Tuesday 31st May 2011
quotequote all
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...

jon-

Original Poster:

16,511 posts

217 months

Tuesday 31st May 2011
quotequote all
After a little research I agree with that understanding, however some people appear to be using the loosely worded second statement to avoid it.

Hmm.

jon-

Original Poster:

16,511 posts

217 months

Tuesday 31st May 2011
quotequote all
All agreed, thanks guys.