VAT Charged on Delivery

Markus Antonius

Bought a large item from a construction supplies shop that requires delivery. Noticed that VAT is also charged on the price of delivery. I understand this has probably always been the case and is more a government policy problem than a consumer issue.

But does this not take the p!ss out of the term "Value added"? The merchants or the tax system considers items to be more valuable when delivered than when it is in the shop i.e. the "Value Added" - the item being at point B rather than point A needs to be accounted for in tax...

Whoever created such a system must have been the most sour and disgruntled human being to ever have existed.

What happens then if I return the item and have to pay delivery charges again? Do I have to pay VAT on this? Should I not get a refund on the original delivery VAT paid seeing as it is now back at point A again?

Jim2007

You are paying VAT for the delivery and return services, not the item, As you pointed out yourself, there is no value added to the item.

Jim_Hodge

VAT applies to Services as well as goods. The delivery is a service. No way should you get a refund of VAT when returning an item (although some seller will) as you used a service to receive and return the item.

ahnowbrowncow

You don't have to have the item delivered, you can collect it. You're paying for the service of getting it delivered to you and saving you the trouble of collecting it.

Why would you get a refund of VAT if you returned the good and used a courier? The courier would count the delivery and the return as two separate sales and would declare and pay the VAT on both these sales to Revenue.

Your annoyance at the delivery fee is clouding your logic.

Markus Antonius

They should just call it "Transaction tax" then as everything can be considered a good or service.

mondeoman72

If you contact revenue.ie and tell them that, they will take it from there. You never know, maybe they will change it