Charging for delivering firewood and VAT

[County 764]

Hi All,

 

Anyone know the rules regards charging extra for firewood customers outwith your free delivery area? (if you have one)

 

Basically is it ok to charge one person £80 for a bag of hardwood with free delivery then charge another customer £90 they live 10 miles outwith the free delivery area? (Both of the above with the VAT at 5%)

 

I know delivery could be itemised on the invoice but then there's 5% VAT on the firewood and 20% on the delivery and accounting gets more complex.

 

Cheers

[log on tommy]

don't itemise it just call it a delivered price and charge 5% on it that way you save the customer a bob or two and they'll appreciate it.

[gdh]

We do exactly that.Free delivery within 20 miles then more, usually £10/20, after that up to about 40 miles. We just have 5% included in both prices but you could be right in that the delivery charge should technically have 20% on it.

 

I can't help much but it's an interesting question, might be worth looking what larger companies like certainly wood do.

[County 764]

don't itemise it just call it a delivered price and charge 5% on it that way you save the customer a bob or two and they'll appreciate it.

 

Cheers tommy/ ghd

 

That's the way I'm thinking of doing it. I could possibly understand vat at 20% if its getting delivered by a pallet firm but not if its your own product and the point of sale is on delivery.

 

might ask a mate at hmrc but I bet its a grey area

Edited July 18, 2016 by County 764

[pileswasp]

VAT on delivery is at the same rate as the goods whether you itemise it or include it in the price (in this circumstance, at least): https://www.gov.uk/government/publications/vat-notice-70024-postage-and-delivery-charges/vat-notice-70024-postage-delivery-charges-and-direct-marketing

[Woodworks]

don't itemise it just call it a delivered price and charge 5% on it that way you save the customer a bob or two and they'll appreciate it.

 

Yep thats what we do.

[richy_B]

VAT on delivery is at the same rate as the goods whether you itemise it or include it in the price (in this circumstance, at least): https://www.gov.uk/government/publications/vat-notice-70024-postage-and-delivery-charges/vat-notice-70024-postage-delivery-charges-and-direct-marketing

 

Exactly. I have had a VAT inspection and it was confirmed in writing. VAT on delivery follows VAT on product. So 5% on both.

[County 764]

VAT on delivery is at the same rate as the goods whether you itemise it or include it in the price (in this circumstance, at least): https://www.gov.uk/government/publications/vat-notice-70024-postage-and-delivery-charges/vat-notice-70024-postage-delivery-charges-and-direct-marketing

 

 

Thanks for the link. Excellent news

 

There's loads of firewood guys charging domestic customers at 20% on delivery.

 

Its a bit of a saving plus makes for easier bookkeeping

[HertsWood]

If you're delivering firewood to domestic customers, VAT on delivery would be 5%