Do I charge VAT?

Do I charge VAT?

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Hi I wonder if anybody could answer a question that seems to be a bit of a grey area??

I have a client who has just started charging for Postage (which is the cost of a stamp), the postage is for sending out vouchers for a course in her cookery school.  The client is vat registered and the vouchers are charged VAT at the standard rate.  So does she charge VAT on the postage at Standard rate??  I was always of the understanding that if the goods you are sending are charged at standard rate then any delivery is also charged at standard rate but does this apply in this instance as it is for a voucher?

Thanks in Advance!

Replies (2)

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By tom123
29th Nov 2014 21:58

Charge VAT at standard rate.

Your client should charge vat at standard rate. The delivery charge follows the main supply. I stand to be corrected, but I always thought postage is only zero rated if it is the royal mail who is charging it.

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By coolmanwithbeard
30th Nov 2014 00:59

It's a single supply

tom123 is correct in your case as it's a single supply - the delivery cannot be a separate supply as without the product there needs to be no delivery and without the delivery you cannot get your product.

This also would mean that where you pay a vat registered courier to deliver but you sell something zero rated you zero rate the whole lot.

 

I did think normal postage was exempt too not zero rated - although do check your post office receipt as some parcels/packages do incur VAT even from Royal Mail

 

M

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