VAT on shipping

[markact]

Am i blind or:

Why does VAT get added to product + shipping cost in checkout.

We would prefer Product + VAT, then add our flat shipping rate after VAT has been added.

is this possible.
Thanks in advance.

[wjcampbe]

It's set up the way it is because that is what the law requires. You provide a shipping service to your customers. That service is liable for VAT. The tax gets charged. You account for it on your VAT returns and you pay it to the man.

[Mike Hughes]

Bill is right. Shipping charges are vatable if your products/goods/services are.

Actinic doesn't force this though. All you have to do is set the VAT on your shipping charges to be zero rated (although this is wrong and HMRC will expect you to pay them the VAT even if you haven't charged the customer).

Actinic currently makes the mistake of showing shipping charges before VAT during the checkout phase (when setup to show VAT inclusive prices). They know about this and we're expecting it to be fixed along with the other VAT anomalies soon.

Mike