VAT on shipping
Hi
I’m registering for Vat from 1st January, my Accountant has confused me as to pricing regarding postage, I currently absorb the shipping costs into my pricing, so effectively its free postage for the customer, but I’m assuming that will be a problem when VAT registered, as postage in vat free, so I should put cost of item then postage costs separate to avoid problems with VAT, Is that correct?
VAT on shipping
Hi
I’m registering for Vat from 1st January, my Accountant has confused me as to pricing regarding postage, I currently absorb the shipping costs into my pricing, so effectively its free postage for the customer, but I’m assuming that will be a problem when VAT registered, as postage in vat free, so I should put cost of item then postage costs separate to avoid problems with VAT, Is that correct?
6 replies
Seller_7VbclcPFFRTnc
You use your total income for vat - including postage. (Speak to your accountant re vatable v non vat sales of certain products)
Whether or not your postage costs have vat included depends on where you buy it and what service
Seller_ejwc84JNL5Uk6
Not correct - its the act of posting/delivering that has VAT so you are liable for this. If the item itself is zero rated (ie books that you read as opposed to books you can write in like a diary) then there is no Vat chargeable on the postage. Its mainly just stamps you buy over the counter that are not Vatable.
Seller_a8eWx2pfTXiWY
Thanks, This is were my accountant is confusing me, she stated you don’t pay VAT on postage, but I ship via Amazon Hermes, so I do pay Vat on postage, and the goods I sell I pay Vat on, Thankyou more explaining to the accountant I think
Thanks
Seller_a8eWx2pfTXiWY
Yes she is passing me over to her college, who has experience with Amazon
Thanks The Little Shop
