Hi,
I have been advised by my accountant that as per HMRC guidance a VAT registered business must charge VAT on their goods or services, even if the supplier is recharging my business at VAT exempt costs.
However, my supplier (from Norway) tells me that the international shipping cost on my invoice shouldn't include VAT. Apparently, this applies to all countries and they have been told that by one of the international shipping companies. Is that correct? Is there any specific VAT legislation?
At the moment my invoices for UK customers show shipping cost including VAT but perhaps this should be changed and I shouldn't pay for VAT on shipping cost?
I will be grateful for any clarification on this.
I have been advised by my accountant that as per HMRC guidance a VAT registered business must charge VAT on their goods or services, even if the supplier is recharging my business at VAT exempt costs.
However, my supplier (from Norway) tells me that the international shipping cost on my invoice shouldn't include VAT. Apparently, this applies to all countries and they have been told that by one of the international shipping companies. Is that correct? Is there any specific VAT legislation?
At the moment my invoices for UK customers show shipping cost including VAT but perhaps this should be changed and I shouldn't pay for VAT on shipping cost?
I will be grateful for any clarification on this.