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  • VAT on P+P

    I dont understand why some companies add vat to their P+P charges.

    Any ideas behind this?
    https://folksy.com/shops/GrimmExhibition


    http://poisonedapplecraftuk.blogspot.co.uk/

    Poisoned Apple Theatre - Handmade Crafts on Facebook

  • #2
    I am only taking a guess here but it you can only charge VAT if you are registered or if you make above a certain amount (can't remember how much) you must register for VAT. So it maybe that they are not VAT registered.

    Only a guess though.

    Cheers.

    Lisa
    Bowed Over
    Handmade Dog Collar Accessories
    www.bowedover.co.uk

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    • #3
      Really!!So vat registered companies can add vat onto their set P+P charge?!

      So annoying.Id noticed one of my suppliers doing that but none of the others.
      Just made an enquiry from another comany, they gave me a price and I worked out they charged vat on everything like surcharges and P+P.Very annoying.
      https://folksy.com/shops/GrimmExhibition


      http://poisonedapplecraftuk.blogspot.co.uk/

      Poisoned Apple Theatre - Handmade Crafts on Facebook

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      • #4
        Yep if you are registered you can claim back VAT. I think if you make over £61,000 a year you need to register for VAT however you can also register for VAT voluntarily which means again you can claim back the VAT.

        All the best.

        Lisa
        Bowed Over
        Handmade Dog Collar Accessories
        www.bowedover.co.uk

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        • #5
          Originally posted by candles by lisa View Post
          only charge VAT if you are registered or if you make above a certain amount (can't remember how much) you must register for VAT.
          Correct...

          The current registration threshold for taxable supplies is £61,000.
          2007..




          But you can opt in.. If you buying enough stuff its worth it...
          .


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          • #6
            VAT is a pain in the grass!!

            Companies should not be putting VAT on postage but I dont think there is a lot you can do about it.

            Try complaining to them you might get it refunded

            Julz

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            • #7
              Well said Julz.
              I just annoys me immensly, all these kind of hidden extra charges.
              https://folksy.com/shops/GrimmExhibition


              http://poisonedapplecraftuk.blogspot.co.uk/

              Poisoned Apple Theatre - Handmade Crafts on Facebook

              Comment


              • #8
                Businesses that send items by carriers usually have an acount with the carrier. The carrier charges them a set amount for each size or weight and there is a fuel charge on top (a percentage of the carriage total) and then VAT is charge on the whole.

                If they send the item by Royal Mail - they pay for the postage when they send and there should be no VAT charged on that amount.

                Hope this helps.

                Annette
                Annette

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                • #9
                  I have just registered for VAT. As i'm not earning over the current threshold i done a voluntry registration. There can be many benefits to becoming VAT registered and thats not just claiming the VAT back on purchases you make for supplies.

                  If you work from home you can claim a % of the VAT back on your phone, mobile, electric. Claim back all VAT on your internet connection bill (broadband or dial up).

                  Also if you buy any equipment for use in your business - for example i've bought a laptop and as i need it to run my business i can claim the VAT back on it.

                  All business' registered for VAT must state whether the price is excluding/including VAT. There VAT number should also be on invoices - you wouldn't believe how many invoices i see with no number on them, some are just trying to get more profit when they aren't even registered.

                  A lot of people think that being registered would be a big hassle but it's only a matter of getting all your invoices together and recording them once every 3 month (you can even do an annual return).

                  Sorry just realised how long this post is, you can WAKE UP NOW!
                  Emma
                  Luxury craft supplies & magnolia Stamps - Sassy Crafts
                  Sassy Crafts Blog
                  My Blog

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                  • #10
                    Originally posted by EMEvans View Post
                    If you work from home you can claim a % of the VAT back on your phone, mobile, electric. Claim back all VAT on your internet connection bill (broadband or dial up).

                    Also if you buy any equipment for use in your business - for example i've bought a laptop and as i need it to run my business i can claim the VAT back on it.
                    How do you go about claiming it back? I presume with the laptop you would have to submit a receipt etc. I bought mine before starting crafts so guess I can't claim anything. But what about electricity? Is it the VAT % of your total bill? Very handly to know this!!!
                    Katian Mosaics

                    ♥ My Ebay Listings ♥

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                    • #11
                      You claim it back on your VAT returns.

                      First of all you record all your inputs (purchases) and outputs (sales). You can do this in a book or on a speadsheet. There is no submitting of receipts. The whole VAT thing works on trust - Customs and Revenue trust you to fill out your return correctly.

                      You can claim VAT back on any capital expenditure you have made for your business up to 3 years before your registration date (provided you've got your receipts). Any revenue expenditure can be claimed up to 6 months previous to registration AS long as you still have it as stock on the date of registration. Things such as VAT on phone bills cannot be back dated as this has been 'consumed'.

                      Vat is only 5% on electric and gas and you could probably claim 50% of this back. VAT on phones/mobiles is at the standard rate (17.5%) - if you use these a lot for business you could claim back about 75% of the VAT element.

                      I'm not very good at explaining so if you don't understand this, let me know.
                      Emma
                      Luxury craft supplies & magnolia Stamps - Sassy Crafts
                      Sassy Crafts Blog
                      My Blog

                      Comment


                      • #12
                        Originally posted by candles by lisa View Post
                        I am only taking a guess here but it you can only charge VAT if you are registered or if you make above a certain amount (can't remember how much) you must register for VAT. So it maybe that they are not VAT registered.

                        Only a guess though.

                        Cheers.

                        Lisa

                        Not sure why but 60k comes to mind!!
                        eat, sleep, breathe, STITCH!
                        www.buttonberry.com
                        www.buttonberry.co.uk

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