VAT on postage

[Mark_Skyland]

Unfortunately fellas we do pay the royal mail VAT and it can be cheaper to ship to France than it is to Northern Scotland.

 

We didn't pay VAT on our previous account with royal mail but we do now with this one, plus side is we do not have to drive to the post office and queue up! Even then we still have to charge VAT as it is a supply of goods, if we didn't charge VAT we could be in big trouble. Also it is postal costs and packaging costs so I do not know how or if you could even split that up.

 

We are looking into cheaper postage costs when the new web site is up and running, there is hopefully going to be a few tiers rather than free over £60 and £4.75 below that (Northern Scotland and NI £6.5 no matter how much you spend) which is where we are ATM.

 

It is difficult to sort out as we have been stung so many times in the past.

[skyhuck]

Unfortunately fellas we do pay the royal mail VAT and it can be cheaper to ship to France than it is to Northern Scotland.

 

We didn't pay VAT on our previous account with royal mail but we do now with this one, plus side is we do not have to drive to the post office and queue up! Even then we still have to charge VAT as it is a supply of goods, if we didn't charge VAT we could be in big trouble. Also it is postal costs and packaging costs so I do not know how or if you could even split that up.

 

We are looking into cheaper postage costs when the new web site is up and running, there is hopefully going to be a few tiers rather than free over £60 and £4.75 below that (Northern Scotland and NI £6.5 no matter how much you spend) which is where we are ATM.

 

It is difficult to sort out as we have been stung so many times in the past.

 

Come on!! who do you think your kidding You know EXACTLY how much the postage is costing you, so it ain't difficult

[Mark Bolam]

I've looked into this today.

Postal charges BY THE POST OFFICE are VAT exempt. Anyone else has to take it dry, no lube.

That seems fair, the Post Office are always sending me good stuff....

As you were fellas, sorry Huck.

It wasn't a pop at you Mark, Skylands postage is insignificant beside your massive prices and terrible service!

Every cloud mate! [emoji3]

 

 

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[Steve Bullman]

It's not as simple as that skyhuck. You'd have to invoice 2 separate items...postage and packaging

 

 

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[Neil-R]

As mark skyland said as a Royal Mail account customer the postal services are liable to VAT , which then obviously has to be passed on to the customer , see the following from the Royal Mail website

Changes to VAT rules and the way in which our products are regulated have affected the VAT status of a number of our products.

A summary of the main products affected is shown later on this page.

Universal services (USO) such as 1st and 2nd Class stamps will continue to be VAT exempt. A list of products that will remain VAT exempt is also shown later on this page.

For more information on Royal Mail prices visit: http://www.royalmail.com/prices-2014

Many business customers can reclaim VAT. If your business is registered for VAT, and sells taxable goods or services, then as a general rule, you will be able to recover the VAT in the normal way on your VAT return. For professional advice, talk to your Finance department, accountant or tax advisor. You can also find more information on VAT at the HMRC website: http://www.hmrc.gov.uk/vat (new window). Opens in new window

Royal Mail products that are liable to VAT

 

Parcel Despatch

 

Special Delivery Guaranteed by 9am[emoji769] (stamps, franking and account)

Special Delivery Guaranteed by 1pm[emoji769] (account)

Royal Mail Tracked 24 and Royal Mail Tracked 48

Royal Mail Sameday[emoji768]

Royal Mail 1st and 2nd Class Account Mail (formerly Packets)

Royal Mail Signed For[emoji769] will also become liable to VAT if purchased as an add-on to a standard rated service. In all other circumstances it will remain VAT exempt.

Marketing Services

 

Advertising Mail[emoji769] (formerly Advertising Mail 70,120, and 1400, including Big Book and Heavyweight options)

Sustainable[emoji768] Advertising Mail (formerly Sustainable Mail)

Door to Door[emoji769]

Publishing

 

Publishing Mail (formerly Pressstream[emoji768])

General Correspondence

 

Business Mail 1st Class (formerly Standard Account letters and large letters, Automated Standard Tariff Large Letter (ASTLL), Cleanmail[emoji768], Cleanmail[emoji768] Plus and Cleanmail[emoji768] Advance, Mailsort[emoji768] 70, 120, 700 and 1400, and Walksort[emoji768])

Business Mail (formerly Standard Account letters and large letters, Automated Standard Tariff Large Letter (ASTLL), Cleanmail[emoji768], Cleanmail[emoji768] Plus and Cleanmail[emoji768] Advance, Mailsort[emoji768] 70, 120, 700 and 1400, and Walksort[emoji768])

Response Services

 

Response Services License fees

Special Delivery Guaranteed Returns[emoji769]

Business Reply Plus and Freepost Plus

Business Reply Standard, Freepost Standard and Freepost NAME

International (VAT will be charged to EU destinations)

 

International Business Tracking and Signature services (International Business Tracked & Signed, International Business Signed and International Business Tracked)

International Business Services (International Business Mail, International Business Parcels) and where a price is worldwide then VAT will apply to all destinations

International Business Mail Response and International Parcel Returns and where a price is worldwide then VAT will apply to all destinations)

International Tracked

International Redirections

Outbound Mail

 

Collections

Inbound Mail

 

PO Box[emoji768]

Timed Delivery[emoji769]

Early Collect

Early Extraction[emoji769]

Pre-sorted Delivery

Selectapost

Local Collect[emoji768]

Diversion

Other Products

 

Business Mail Secure

Admail

Callers Services

Posting Cheque administration charge

Private Posting Box

Royal Mail administration fee for collection of HMRC charges

Royal Mail Pouch Services

Rural Newspaper Delivery

Rural Carriage of Goods

Redirect Diversion

Ministerial Pouch services

Do not redirect

Safebox

Contract Products

 

Mailroom Management

Mailroom Consulting Services

Royal Mail Relay[emoji768]

Royal Mail products that remain exempt from VAT, in addition to free products

 

UK

 

1st and 2nd Class (stamps, online, franking, account*)

Special Delivery Guaranteed[emoji769] (stamps and franking)

Royal Mail Signed For[emoji769] (if purchased with a VAT exempt service)

Keepsafe[emoji769] (personal and business)

*1st and 2nd class account is a new product that was launched in April 2012. This is a Universal Service which does not qualify for volume related discounts. Royal Mail also offers a 1st and 2nd class service called Business Mail which is available on account. Volume related discounts are available on this service for larger postings and VAT is liable

 

International

 

International Standard

International Economy

International Signed and International Tracked & Signed

All HM Forces Mail (BFPO)

Inbound Mail

 

Redirections within UK (personal and business)

Useful links

Recent changes to terms and conditions

Non-contract terms and conditions

Shop terms and conditions

Sale of Retail Products to Retailers Ts & Cs

Credit policy

Privacy policy

Our prices

Information on VAT

Condition 9 access

Online Business Account terms and conditions

Fuel and international surcharges

Amazon/Online Postage terms and conditons

International sanctions

Stamps and collectibles terms and conditions

 

 

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[skyhuck]

It's not as simple as that skyhuck. You'd have to invoice 2 separate items...postage and packaging

 

 

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The cost of the item should include packaging, I do not believe that it takes longer to pack an item than to serve a customer collecting it.

[Mark_Skyland]

Come on!! who do you think your kidding You know EXACTLY how much the postage is costing you, so it ain't difficult

 

Well, I suppose you could also break a job down into how much you would charge for every individual branch cut, some chipped some not. It could be done but how can it be carried efficient and effectively?

 

The cost with royal mail can be broken down into about 15 or more different categories, size of parcel (also depends on if its a large letter or a parcel) weight, 24 or 48 hour delivery and compensation level. So we would have to size the parcel up work out the price and start splitting the postage charge up, for the sake of saving the customer about 60p (which we cant as we have to charge VAT) I think the extra labour would put the price up. So, basically we lose out on the vast majority of orders ie, we have to subsidise the postage cost.

 

Cheers Mark, I knew I could count on you to big us up. Dont worry, we get our fair share of abuse about our postage charges even though they are fairly low in comparison so are used to it.

[Mark Bolam]

I'm sorry I started this thread.

VAT is probably the worst thing to happen to this country since Inheritance Tax.

And Strictly Come Dancing.

 

 

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[Mark Bolam]

Well, I suppose you could also break a job down into how much you would charge for every individual branch cut, some chipped some not. It could be done but how can it be carried efficient and effectively?

 

 

 

The cost with royal mail can be broken down into about 15 or more different categories, size of parcel (also depends on if its a large letter or a parcel) weight, 24 or 48 hour delivery and compensation level. So we would have to size the parcel up work out the price and start splitting the postage charge up, for the sake of saving the customer about 60p (which we cant as we have to charge VAT) I think the extra labour would put the price up. So, basically we lose out on the vast majority of orders ie, we have to subsidise the postage cost.

 

 

 

Cheers Mark, I knew I could count on you to big us up. Dont worry, we get our fair share of abuse about our postage charges even though they are fairly low in comparison so are used to it.

 

 

Haha, it never bothers me normally mate, I keep shopping on arb sites till I get my money's worth!

£11.90 bolt package for the TW rocking in at over £21 pissed me off though.

No new shoes for the kids again this week.

Or the wife.

 

 

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[Mark_Skyland]

The cost of the item should include packaging, I do not believe that it takes longer to pack an item than to serve a customer collecting it.

 

It can take longer to, print the packing slip, pick the item, get suitable packing material, package it up, attach packing slip, input delivery details to courier system, print the label out and attach, move the parcel to the storage place then move it again when the courier arrives, then receive it back and do it all again as the customer needs a different sized pair of boots!

 

Realistically if you looked at every individual item and worked out how much it would cost to package it up then add the cost in it would probably kill me. Then you would be accused of over charging if a customer bought multiple items that all went in the same box.