Hi all,
I have looked every where for the answer to this and I am no better off than I was 12 hours ago. A sole trader purely selling second hand childrens clothing on ebay is interested in going VAT registered, reason being is the items being sold are zero rated, the Whistl delivery, postage bags, labels, ink etc are all vatable, reading about postage vat has made my head hurt, I understand completely about charging VAT on postage and in this case you would not be charging VAT on the postage as the liability on the products are zero. However there is no definitive answer on whether you can claim VAT on the deliveries, does anyone know if you can or not. In my head you can because you have been charged it but because everywhere goes on about the VAT being the same as the products sold, does this mean you cant claim it back as that VATable purchase of delivery is now turned zero rated? The postage is offered free to the customer so if the item sells for £10 the seller pays the £2.95 or whatever it is and make 7.05 less ebay fees etc
Any help would be brilliant
Thankyou
I have looked every where for the answer to this and I am no better off than I was 12 hours ago. A sole trader purely selling second hand childrens clothing on ebay is interested in going VAT registered, reason being is the items being sold are zero rated, the Whistl delivery, postage bags, labels, ink etc are all vatable, reading about postage vat has made my head hurt, I understand completely about charging VAT on postage and in this case you would not be charging VAT on the postage as the liability on the products are zero. However there is no definitive answer on whether you can claim VAT on the deliveries, does anyone know if you can or not. In my head you can because you have been charged it but because everywhere goes on about the VAT being the same as the products sold, does this mean you cant claim it back as that VATable purchase of delivery is now turned zero rated? The postage is offered free to the customer so if the item sells for £10 the seller pays the £2.95 or whatever it is and make 7.05 less ebay fees etc
Any help would be brilliant
Thankyou