VAT on postage and packing
I have a client who is selling via Ebay, has reached the VAT threshold and now registered . His despatches are done partly via parcels and part via normal royal mail. As he will be reclaiming VAT on the parcel despatch costs, he is aware that full VAT is payable on P and P charged. Where however goods are sent via normal mail using stamps he is unsure as to whether he will have to account for output VAT on the P and P portion of the sale.
Thanks in advance