getting rid of vat on postage & packing

[bangers]

Is there anyway I can stop my postage and packing being subject to vat which is added to my products?

[m@rk.to]

I have spoken to Customs and Excise about this in the past. Namely and albeit one doesn't pay VAT on postage stamps, P&P, shipping or any similar distribution mechanism that involves you providing a service (eg putting it in a box) will mean that the whole service (manpower, box & postage) *is* VATable.

Thus and under UK and Europe, you have to charge VAT on shipping.

We have experienced customers begging this question in the past but are happy with our explanation. If the shipment is to a non UK or EU destination, then the whole order will be non VATable anyway.

Hope that helps.