Question about P&P?

[124fan]

I was wondering what the correct way of doing this is?

If you buy goods over the phone for eg. and it comes to 100 and they then add on VAT at 15%, gives you 115 and then they add on the P&P say another 10, so total is 125.

Or its 100 + 10 P&P + VAT = 126.50

Is there a correct way?

Cheers

 

[Chris Akabusi]

I think it should be.

Product + Vat + P&P

 

[GordonTarling]

The supplier should (and usually will) charge the VAT on the postage and packing charge as well. Although the P.O. doesn't charge VAT on the postage, the supplier is providing you with a service, which IS chargeable.

 

[crockers]

Don't think I have ever been charged VAT on P&P....

 

[Mudster]

You can't charge vat on any charges from Royal Mail / Post office.

However if it's a courier or basically any service other than the Royal Mail then their charges are subject to vat.

 

[whizzkid11]

The proper way is to

PRICE + VAT + P&P

However, most small traders will charge: PRICE + P&P + VAT

Everybody in the world is after money, no matter how and where they get it from .... given the right numbers even the most adamant will give in!!

 

[nick mercedes]

I was wondering what the correct way of doing this is?

If you buy goods over the phone for eg. and it comes to 100 and they then add on VAT at 15%, gives you 115 and then they add on the P&P say another 10, so total is 125.

Or its 100 + 10 P&P + VAT = 126.50

Is there a correct way?

Cheers

Price + Shipping + VAT

 

[nick mercedes]

You can't charge vat on any charges from Royal Mail / Post office.

However if it's a courier or basically any service other than the Royal Mail then their charges are subject to vat.

The problem is that you have to charge VAT on P&P, but you can't get the VAT back from Royal Mail as there has been no paid.

Nice little earner for the VAT man...

 

[Sp!ke]

You shouldnt really charge VAT on post office costs but you can charge it on the cost of packaging materials and your wrapping time and costa associated with getting the item to the post office.


As others have said however, most people charge VAT on the total which is a little naughty unless a VAT registered courier company is used as opposed to the post office.

 

[crockers]

I prefer free P&P

 

[raymont]

I believe the rules for VAT on postage are as follows:

If delivery is included in the supply contract then VAT is chargeable at zero or standard rate according to the nature of the goods supplied.

If delivery is an extra service then VAT is chargeable at the standard rate regardless of the nature of the item in question.

The above applies no matter who is doing the delivery, PO or courier.