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VAT claims on postage selling kids clothes

Can you claim vat back on deliveries on kids clothes sold to people with free postage?

Hi all,

I have looked every where for the answer to this and I am no better off than I was 12 hours ago. A sole trader purely selling second hand childrens clothing on ebay is interested in going VAT registered, reason being is the items being sold are zero rated, the Whistl delivery, postage bags, labels, ink etc are all vatable, reading about postage vat has made my head hurt, I understand completely about charging VAT on postage and in this case you would not be charging VAT on the postage as the liability on the products are zero. However there is no definitive answer on whether you can claim VAT on the deliveries, does anyone know if you can or not. In my head you can because you have been charged it but because everywhere goes on about the VAT being the same as the products sold, does this mean you cant claim it back as that VATable purchase of delivery is now turned zero rated? The postage is offered free to the customer so if the item sells for £10 the seller pays the £2.95 or whatever it is and make 7.05 less ebay fees etc

Any help would be brilliant

Thankyou

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20th Jun 2018 08:10

Would you not reclaim the vat on the paper you use to print the packing slip just because it was going in with the clothes?

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20th Jun 2018 08:14

Definitive answer:
The sale of children's clothes, including delivery charge, is zero rated. (Do not make the delivery optional!)
Input tax is therefore recoverable on postage and delivery costs.
And, consider back-dating your registration to recover historic input tax.

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to leshoward
20th Jun 2018 08:24

Thankyou for that, I hoped that was the case, VAT registration form going in today!

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to leshoward
20th Jun 2018 09:36

leshoward wrote:

Definitive answer:
The sale of children's clothes, including delivery charge, is zero rated. (Do not make the delivery optional!)
Input tax is therefore recoverable on postage and delivery costs.
And, consider back-dating your registration to recover historic input tax.

I agree with you, Les. But surely the charge to the client from his supplier should also be zero-rated.

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to leshoward
21st Jun 2018 07:50

Does it differ if you do not offer free postage? Do you charge the full postage amount or ex vat

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