VAT Charge Question

[clee1982]

For all the guys who live in EU area (or England specifically),

How were VAT charge calculated for you guys?

So I just got a shipping with declared value of 49.99 USD on 35.60 USD shipping fee (from US). In total I got hit by 10.67 pounds worth of VAT. This is about right if you add the declared value to the shipping fee then convert to GBP apply 20% VAT.

My question is does VAT always include shipping fee, or it's just they purposely f*ed up and hoping no one noticed? I thought VAT was on declared value only...

thanks

 

[ManofKent]

Originally Posted by clee1982

For all the guys who live in EU area (or England specifically),

How were VAT charge calculated for you guys?

So I just got a shipping with declared value of 49.99 USD on 35.60 USD shipping fee (from US). In total I got hit by 10.67 pounds worth of VAT. This is about right if you add the declared value to the shipping fee then convert to GBP apply 20% VAT.

My question is does VAT always include shipping fee, or it's just they purposely f*ed up and hoping no one noticed? I thought VAT was on declared value only...

thanks

I'm not 100% sure, but I thought it was on declared value only (+the handling charge - Royal Mail/Parcel Force charge £8 but I think UPS etc. charge more).

 

[clee1982]

Originally Posted by ManofKent

I'm not 100% sure, but I thought it was on declared value only (+the handling charge - Royal Mail/Parcel Force charge £8 but I think UPS etc. charge more).

that's what I thought too, but there are clearly 2 items
1. VAT: 10.67 pound
2. Parcel Force Handling fee: 8 pound

10.67/0.2 = 53.35pound
53.35 pounds is about 85~86usd, so that's pretty much 49.99 (declared value)+35.60 (USPS Postage Fee)

 

[Blackhood]

Postage is a service and thus is VAT chargable.

The only stuff thats not is:

Basic foodstuff (not luxury foods like cake and soft drink)
Children's Clothing
Medicines

 

[aMb]

Yes the supply of postal services will be subject to VAT, unless it's provided by the Royal Mail. I guess as it's come from USPS it would be charged to VAT.

 

[clee1982]

mother...

 

[rebel222]

 

[GrumbleGrumble]

Originally Posted by Blackhood

(not luxury foods like cake and soft drink)
As a minor point, cake doesn't qualify for VAT but biscuits do. Hence theJaffa Cake VAT dispute.

 

[clee1982]

Originally Posted by rebel222

I am thinking about shipping everything to my girlfriend, then just pick it up on the next trip, also as I have learned, it's actually cheaper to ship to US and pick it up there... (at retail exclude VAT anyway...).

 

[bengal-stripe]

Originally Posted by GrumbleGrumble

As a minor point, cake doesn't qualify for VAT but biscuits do.

Ordinary biscuits, like most food, do not attract VAT, but biscuits covered with chocolate (whole or partially)
are subject to VAT.

The Advocate-General said yesterday: “In general, the supply of food is zero-rated for VAT in the UK. Confectionery is an exception to such favourable tax treatment.

“There is an exception to that exception for cakes and biscuits, which are subject to the zero rate of tax applying to food. Biscuits wholly or partly covered with chocolate, however, are regarded as confectionery and taxed accordingly at the full rate.”

http://www.timesonline.co.uk/tol/mon...cle3048622.ece

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