Royal Mail and Courier Shipping

[Michael Parker]

We ship products by both Royal Mail (up to 2kg) and also a courier (over 2kg).

When using Royal Mail we do not want to charge the custoemr VAT for the shipping (no VAT on stamps). When using the courier we do charge VAT.

Is there any way that Actinic can handle this?

[cdicken]

I am not an expert on this by any means, but the way I understand it is that when people have order delivered by Royal Mail, they are not buying the stamps from you, they are paying for a service that you (and the Royal Mail) are providing for them. Therefore the tax status is different.

If someone feels the need to correct me on this they are very welcome.

The correct way to charge tax on shipping is that it should be charged as a proportion of the tax charge on the whole order (taking into account taxed and non-taxed items). This is also known 'Pro-Rata' and is an option in the 'Tax Treatment' drop-down.