RomanCart.com Forum Homepage
Forum Home Forum Home > RomanCart > Announcements
  New Posts New Posts
  FAQ FAQ  Forum Search   Register Register  Login Login

Shipping Tax Question

 Post Reply Post Reply Page  12>
Author
Message
Support View Drop Down
RomanCart Team
RomanCart Team


Joined: 16 March 2004
Location: United Kingdom
Status: Offline
Points: 10592
Post Options Post Options   Thanks (0) Thanks(0)   Quote Support Quote  Post ReplyReply Direct Link To This Post Topic: Shipping Tax Question
    Posted: 20 February 2012 at 5:32pm
Hi,

Does anyone have any case where shipping prices should include tax when the product prices exclude tax. Or where shipping prices should not include tax where product prices do include tax.

We are trying to simplify the system and would like to make is so that the 'includes tax' status of shipping methods are the same as the global setting for the cart.

Many Thanks
Support

Edited by Support - 20 February 2012 at 5:32pm
Back to Top
RitaL View Drop Down
Newbie
Newbie


Joined: 08 August 2011
Location: UK
Status: Offline
Points: 22
Post Options Post Options   Thanks (0) Thanks(0)   Quote RitaL Quote  Post ReplyReply Direct Link To This Post Posted: 20 February 2012 at 7:18pm
If shipping to the Channel Islands then the goods have no tax, but some royal mail services now attract VAT. e.g. "Special Delivery"

Vice Versa

If shipping within mainland UK then goods have VAT, but standard Royal Mail has no VAT.

Also some products attract different rates of VAT.

Rita.
Lincraft Stationery
Back to Top
Support View Drop Down
RomanCart Team
RomanCart Team


Joined: 16 March 2004
Location: United Kingdom
Status: Offline
Points: 10592
Post Options Post Options   Thanks (0) Thanks(0)   Quote Support Quote  Post ReplyReply Direct Link To This Post Posted: 20 February 2012 at 7:36pm
Hi Rita,

Thanks for the reply.

Even though the Royal Mail are exempt from VAT, if you are VAT registered you still have to charge VAT on the shipping amount to your customers as technically you are supplying the postage service even though you may be using Royal Mail.

If shipping to the Channel Islands and not charging tax on the goods, then you would also not charge tax on the shipping whether or not you actually had to pay it yourself.

Therefore in both these cases the tax status of the shipping methods would be the same as the goods.

Many Thanks
Support

DISCLAIMER: We do not provide tax advice. Check with the VAT office for information on when, where and how much VAT to pay for any given circumstance. Never rely on information from these forums or other non HMRC sources.
Back to Top
bjcam View Drop Down
Regular
Regular


Joined: 02 February 2010
Location: Glasgow
Status: Offline
Points: 53
Post Options Post Options   Thanks (0) Thanks(0)   Quote bjcam Quote  Post ReplyReply Direct Link To This Post Posted: 20 February 2012 at 8:54pm
Hi Support
I have just added a book to the product list which is zero VAT, but shipping is vatable.
B J Cam
Back to Top
Support View Drop Down
RomanCart Team
RomanCart Team


Joined: 16 March 2004
Location: United Kingdom
Status: Offline
Points: 10592
Post Options Post Options   Thanks (0) Thanks(0)   Quote Support Quote  Post ReplyReply Direct Link To This Post Posted: 20 February 2012 at 8:55pm
Hi,

Do you mean that shipping is charging VAT, but you are not expecting this?

Many thanks
Support
Back to Top
raineshoe View Drop Down
Senior Member
Senior Member


Joined: 03 October 2007
Location: United Kingdom
Status: Offline
Points: 1502
Post Options Post Options   Thanks (0) Thanks(0)   Quote raineshoe Quote  Post ReplyReply Direct Link To This Post Posted: 20 February 2012 at 9:21pm
Originally posted by bjcam bjcam wrote:

Hi Support
I have just added a book to the product list which is zero VAT, but shipping is vatable.


I've had this very discussion elsewhere and this is what the VAT office told me, although someone else said I should ask them again as he thinks I've been advised wrongly. Seems you've been told the same information though.
Back to Top
ilewis04 View Drop Down
Newbie
Newbie


Joined: 02 July 2008
Status: Offline
Points: 16
Post Options Post Options   Thanks (0) Thanks(0)   Quote ilewis04 Quote  Post ReplyReply Direct Link To This Post Posted: 20 February 2012 at 10:38pm
I had a similar question & put it to the VAT office & they told me that as the postage charge is effectively "post & packing" i.e. a different figure to what is actually charged by Royal Mail (even if only by a fraction of a panny) then this is a UK service provided within the UK & as a VAT registered business the postage charged is liable for VAT at the standard rate. For us what this meant was that anything snt outside of the EU had to have VAT charged on the postage, but not on the goods themselves. Although I have to admit that I wasn't 100% convinced about this at the time, but this was the VAT man & not someone I felt brave enough to argue with!
Hope this helps.
Rechargeable batteries & more.
Component-Shop
Back to Top
rscass View Drop Down
Senior Member
Senior Member


Joined: 07 November 2007
Status: Offline
Points: 684
Post Options Post Options   Thanks (0) Thanks(0)   Quote rscass Quote  Post ReplyReply Direct Link To This Post Posted: 20 February 2012 at 11:23pm
The full VAT notice re. P&P is notice 700/24.

It's here: http://tinyurl.com/kdhgw

The notice makes a number of references to VAT being applied to a separate packing service.

Example of a separate packaging service: If you offer a gift wrapping service on your website at Christmas for an extra fee, or if you have an entirely separate charge for packing (maybe a surcharge to cover optional extra padding for customers of a nervous disposition), then the VAT rate is charged at the standard rate [to this EXTRA packaging element supplied at the customer's request - not normally needed to ship the goods] if the goods are to be delivered within the EU - regardless of whether the supplied goods are standard rated or not. This applies whether the items you are posting as standard rated or not.

But as a bog-standard mail order business, you're not offering an entirely separate packaging service nor are you buying stamps on your customer's behalf (Google 'disbursements, VAT').

Delivery, is not an optional extra - you are simply delivering the goods as part of your contract with the customer - there is no other option. As such, the VAT rate applied to P&P will be the same as the goods that are shipped (split accordingly if there's a mix of standard and zero rate/exempt goods).

An accountant will confirm the above.

Richard.
Back to Top
rscass View Drop Down
Senior Member
Senior Member


Joined: 07 November 2007
Status: Offline
Points: 684
Post Options Post Options   Thanks (0) Thanks(0)   Quote rscass Quote  Post ReplyReply Direct Link To This Post Posted: 20 February 2012 at 11:28pm
Originally posted by ilewis04 ilewis04 wrote:

........For us what this meant was that anything snt outside of the EU had to have VAT charged on the postage, but not on the goods themselves.


That is wrong.

Goods shipped outside of the EU are zero rated - so is the shipping.
Back to Top
rscass View Drop Down
Senior Member
Senior Member


Joined: 07 November 2007
Status: Offline
Points: 684
Post Options Post Options   Thanks (0) Thanks(0)   Quote rscass Quote  Post ReplyReply Direct Link To This Post Posted: 20 February 2012 at 11:36pm
Support - for your purposes, I would urge you to speak to a professional or someone at HMRC who speaks plain English.

I used to work for a firm of accountants, but it was a long time ago.

In answer to the original question, the example I've outlined above is the only one I can think of where packaging would be treated differently to the goods for VAT purposes.

Richard.

Back to Top
 Post Reply Post Reply Page  12>
  Share Topic   

Forum Jump Forum Permissions View Drop Down



This page was generated in 0.047 seconds.