UK UK VAT Threshold when providing non-vat service???

Jan 22, 2014
Reaction score
Hi all, I'm a sole trader that operates on a well known internet auction website. My total turnover is edging close to the vat threshold and my small profits seemingly poised to take a hit (I mainly resell items from car boot sales). I've been struggling to find a definitive answer to a question that may help... Can I disregard Royal Mail non-vat services used when calculating my turnover? I do charge the postal cost separate to the item price and the customer is aware they're paying for a non-vat delivery service. I could easily calculate the exact non-vat spending and if disregarded would drop my turnover by around 25%. The carrot I spotted is wording like "when calculating vat taxable turnover" and wondered if this may extend to thresholds. Maybe I'm just clutching at straws but thought it worth asking. Many thanks for any help.



VIP Member
Aug 26, 2011
Reaction score
I'll start by saying I'm not an expert on this, and you should speak to your professional adviser to confirm...

Where there is no separate contract for postage, the supply is viewed as a single supply and would therefore be a taxable supply for VAT purposes.

See section 8.3 of The VAT Guide and Notice 700/24 Postage and delivery charges

I realise you charge separately for postage, but there is no separate contract. It is an online site, and non-delivery would not be an acceptable outcome.

Sorry :(

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question