Hi,
If a carrier (Parcelforce) is zero VAT rated ie. they dont charge me VAT on delivering my items. then do I charge my customers VAT on the delivery or not? I would have thought not, but someone (one of my suppliers) is trying to tell me otherwise and charge me VAT on the Parcelforce deliveries to me.
Thanks
Latest News: (loading..)
0
2 replies to this topic
#2
Posted 22 July 2010, 08:19
If there is VAT on the final invoice which covers the products + delivery then you should be fine. i.e
Product £10
Delivery £10
VAT 17.5% = £2.98
= £22.98
Product £10
Delivery £10
VAT 17.5% = £2.98
= £22.98
Mort-lemur, on 07 June 2010, 18:15, said:
Hi,
If a carrier (Parcelforce) is zero VAT rated ie. they dont charge me VAT on delivering my items. then do I charge my customers VAT on the delivery or not? I would have thought not, but someone (one of my suppliers) is trying to tell me otherwise and charge me VAT on the Parcelforce deliveries to me.
Thanks
If a carrier (Parcelforce) is zero VAT rated ie. they dont charge me VAT on delivering my items. then do I charge my customers VAT on the delivery or not? I would have thought not, but someone (one of my suppliers) is trying to tell me otherwise and charge me VAT on the Parcelforce deliveries to me.
Thanks
#3
Posted 22 July 2010, 17:54
So your supplier ships merchandise to you via Parcelforce, and is charging you VAT on the shipping fee, and your understanding is that it should be untaxed? Is that the problem? If in fact it shouldn't be taxed, they're (at best) collecting and remitting VAT unnecessarily, or (at worst) gouging you by collecting VAT and not remitting it. Is it possible that some classes of shipping (say, wholesale or retail) are taxable, and others not? That would be similar to state sales tax here in the US (only tax final retail sale). You might want to check with Parcelforce to see what they understand the rules to be, and maybe also with the tax people (Inland Revenue?). If they disagree, what does your supplier state are the rules? Don't forget to demand a refund of VAT you've paid to your supplier, if it turns out they're not supposed to collect it (and it's enough to make matters worthwhile). If they can offer documentation that they've remitted it to the authorities, you may or may not be able to get it back. If they've been keeping it, report them. On the other hand, if all the shipping is subject to VAT, you'll have to charge it.
I could see the argument both ways -- that shipping costs are a legitimate part of doing business and add to the cost (value) of the product, so it would be subject to VAT, or it's a cost but adds nothing to the value, so would be exempt. Again, different kinds of shipping (materials/parts, wholesale finished product, retail) may be subject to different tax rates. You'll have to ask the authorities on this one. No wonder there's so much resistance to implementing a VAT here!
I could see the argument both ways -- that shipping costs are a legitimate part of doing business and add to the cost (value) of the product, so it would be subject to VAT, or it's a cost but adds nothing to the value, so would be exempt. Again, different kinds of shipping (materials/parts, wholesale finished product, retail) may be subject to different tax rates. You'll have to ask the authorities on this one. No wonder there's so much resistance to implementing a VAT here!
