VAT

Before I start jumping up and down and throwing myself about, can I please pick someones brain, I have just received my order of CID lipgloss, the price was £16.25, plus 3.25 vat total 19.50, then postage 3.29, plus 0.66 vat, total £23.45. Is this vat on postage correct.

Look's correct to me, 20% of £3.29 is 66p

Well postage via the Royal Mail is exempt from VAT but they can/have to charge VAT if the cost of the stamp/postage is part of the overall charge as in P&P.

I don't remember ever being charged VAT on postage from QVC or anywhere else for that matter.

Thanks for the replies, I havn't ever noticed this before either, hopefully other buyers will check their receipts from QVC in future.

If its P&P then you're almost certainly being charge VAT. Part of that charge is for packing materials and the service of packing whatever it is you're buying. Both are subject to VAT. If a courier cimpany is used then that's subject to VAT too. It's really only a postage stamp that is exempt from VAT. But if a company is bundling the two together that's where it blurs. I suspect QVC have always charged VAT but only recently started showing it on invoices.

VAT isn't optional. Companies have no choice in whether to charge it.

I absolutely know the answer to this as I've sold in a product category that contained a mix of zero and standard rated goods, and the vat charged on the out-going p&p follows the flow of vat charged on the items being dispatched. If you charge £5 p&p and the order contains items that have all attracted standard rate 20% VAT, then the £5 P&P charge is actually £4.17 p&p and £0.83 VAT. If you charge £5, and the order contains items that are all zero-rated, then the £5 charge is £5 p&p and £0 VAT. If it contains a mixture, then the p&p will follow the weighted VAT rate of the goods in the parcel.

Am I now in line for most nerdy post 2013?

Dips said:

I absolutely know the answer to this as I've sold in a product category that contained a mix of zero and standard rated goods, and the vat charged on the out-going p&p follows the flow of vat charged on the items being dispatched. If you charge £5 p&p and the order contains items that have all attracted standard rate 20% VAT, then the £5 P&P charge is actually £4.17 p&p and £0.83 VAT. If you charge £5, and the order contains items that are all zero-rated, then the £5 charge is £5 p&p and £0 VAT. If it contains a mixture, then the p&p will follow the weighted VAT rate of the goods in the parcel.

Am I now in line for most nerdy post 2013?

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of the century (to date). Fascinating, I love facts and figs like this (retired bank manager :blush::devil

Dips said:

Am I now in line for most nerdy post 2013?

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In a word; YES! But very interesting Dips, thank you.