never heard of that one john....new one to me m8 dont see other suppliers doing it ..do they ?. or do you just not see it ?
Yes, you will be paying vat on your delivery to all suppliers if they are vat registered, which most suppliers are. Be it postage stamps or courier - they have to charge vat, the supplier doesn't get this, they collect it for good old Customs & Excise.
Don't forget to work vat and delivery charges into your prices - if you don't you'll not be making as much profit as first thought.
Cheers John
B2B transactions are mostly done as "+ vat" rather than vat inclusive pricing. We always charge vat on delivery and always have done which is the same when buying in goods for us. The likes of Coralgraph might have vat inclusive pricing but they have still added it on and they probably operate that way as they do a lot through ebay. BMS' way is standard practice but I think the complication with sublimation that it does have a broad spectrum of users from the smaller hobby users upto large volume printers. B2B must be the larger bulk of the business for most suppliers but there are more of a B2C element also buying who might be used to having vat included.
The one thing you can be sure of, whether you can see the vat added at the bottom or not the Government are getting their pound of flesh.
The VAT on postage ( supplier to customer) has been charged since the VAT system started. I found this out in 1988 when a supplier rang me and told me I had to pay him the VAT on the postage for packets he sent me over the previous year. About 15 pounds I think it was. Next time I was at this suppliers, I paid him, he gave me a 100% pure VAT receipt and I put it through my books and got the 15 pounds back. A totally stupid exercise but it kept the VAT man happy.
My accountant told me that its one of the best ways of keeping the VAT man happy when he comes to inspect your books. He is always looking for an error in your VAT account. When he finds postage VAT not paid he goes away happy. If he doesnt see this then he keeps looking until he finds something else, and that could be something big.
John G;40543 wrote:Well, i'm now vat de-registered from 15/02/12 so if you want to buy anything off me, I won't charge you any vat on postage :biggrin:
lol @ john ......i,m not gonna be VAT reg myself with this business......think it will take a loooooong while before i get to that stage. - £73,000 if i,m correct !
John G;40543 wrote:Well, i'm now vat de-registered from 15/02/12 so if you want to buy anything off me, I won't charge you any vat on postage :biggrin:
Not sure about that John. Check it out with your accountant. Just because you are not VAT reg doesnt mean your postage isnt VAT included. If a VAT reg customer buys from you then he wants his VAT back. As I said, Im not sure.
bigj2552;40528 wrote:while this thead is still open .....martin -
can you explain your cart system to me regarding figures please...
example -
from your store -
1x mouse mat @ 0.79each ex vat - if i add vat @ 20% = 0.94.+ £2.50 del = £3.44
if you add vat its 0.95
yours 0.95 + your £2.50 delivery = £3.29 on the cart..????
what does this mean > - "We can send small, low value, light weight goods by 1st Class Post from £2.50 to £3.75 +vat". - are you charging VAT on the delivery price ??
can you clarify the above please
regards
johnny
Yes absolutely, vat is chargeable on postage if you are vat registered. Only a small amount of postage items are free from VAT at the post office but even they now will be charging vat on several postal services.
