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Vat when using An Post

  • 16-02-2024 04:28PM
    #1
    tyler_d
    Registered Users, Registered Users 2 Posts: 70 ✭✭


    We sell greeting cards and when a customer orders we use a small or large bubble envelope. The price is E2.95 for the stamp. I assume we have to add vat E2.95+23% to the customer is that right? We are vat registered.

    Thanks in advance.

    Aaron



Comments

  • #2
    Jim_Hodge
    Registered Users, Registered Users 2 Posts: 12,598 ✭✭✭✭Jim_Hodge


    According to Revenue's website

    Postage

    If postage is charged separately and paid entirely to An Post, then these charges are not subject to VAT. 

    • Example
    • A trader charges an extra €5 for posting an order. This full amount for postage is paid over to An Post. The €5 is exempt from VAT.
    • A charge is made for postage that is less than the amount paid over by the supplier to An Post. The postal charge made to the customer is part of the total price of the goods or service supplied. This is subject to the VAT rate applicable to the goods or service in question.




  • #3
    tyler_d
    Registered Users, Registered Users 2 Posts: 70 ✭✭tyler_d


    Thanks for this. So if we pay E2.95 to An Post then we can charge the customer E2.95. We aren't charging extra for post. Just what we pay An Post.



  • #4
    Jim_Hodge
    Registered Users, Registered Users 2 Posts: 12,598 ✭✭✭✭Jim_Hodge


    https://www.boards.ie/discussion/comment/121776596#Comment_121776596

    Correct



  • #5
    tyler_d
    Registered Users, Registered Users 2 Posts: 70 ✭✭tyler_d


    Why don't we charge VAT? It's a service an I thought you would have to charge Vat on goods and services.



  • #6
    Jim_Hodge
    Registered Users, Registered Users 2 Posts: 12,598 ✭✭✭✭Jim_Hodge


    There's no value added to the postage portion of the transaction if you're charging just the actual An Post costs.

    Read the VAT section of the Revenue Site



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