ChatterBank9 mins ago
vat
2 Answers
Hi
Does anyone know if you have to pay VAT on Parcelforce deliveries?
I'm just about to do a VAT return form and im not sure.
Please can anyone help?
Thanks in advance
Answers
1 to 2 of 2
Best Answer
No best answer has yet been selected by london hippo. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.
If a delivery charge is a necessary part of a contract (e.g. where someone buys an item from a mail order company), no VAT is payable on that charge.
If, however, delivery is an 'optional extra' (e.g. if you ask a department store to deliver your goods), then VAT at 17.5% is payable on the delivery charge. (This does not apply where an item is posted because postal charges are exempt from VAT).
The above is just a basic summary of the detailed regulations which are in HMRC document 700/24:
http://customs.hmrc.gov.uk/channelsPortalWebAp p/channelsPortalWebApp.portal?_nfpb=true&_ pageLabel=pageMySite_ShowContent&id=HMCE_C L_000114&propertyType=document
If you're still not certain about whether VAT applies in your specific circumstances, phone the HMRC advice line:
0845 010 9000
Chris
If, however, delivery is an 'optional extra' (e.g. if you ask a department store to deliver your goods), then VAT at 17.5% is payable on the delivery charge. (This does not apply where an item is posted because postal charges are exempt from VAT).
The above is just a basic summary of the detailed regulations which are in HMRC document 700/24:
http://customs.hmrc.gov.uk/channelsPortalWebAp p/channelsPortalWebApp.portal?_nfpb=true&_ pageLabel=pageMySite_ShowContent&id=HMCE_C L_000114&propertyType=document
If you're still not certain about whether VAT applies in your specific circumstances, phone the HMRC advice line:
0845 010 9000
Chris
Well, stone me, as the saying goes!
The OP seems to be referring to a company, but is this consistent across to customers? I had this very argument with HMRC, a year or so ago and they argued doggedly that they should be charging me VAT on shipping charges. I had to pay up. They sent me a little booklet about it, and it did indeed say VAT was chargeable on shipping.
Has this changed recently then?
And, you always get VAT charged on 'postage and packing' when you buy from mail order companies.
1 to 2 of 2
