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Customers in Switzerland and Norway and other non EU European countries do not have to pay VAT on postage.
I have postage rates for Royal Mail EU countries as one price band and Royal Mail non EU European countries as another.
The stupid thing is that when I fill in the Royal Mail docket, there is no way to differentiate between the two and so I get charged VAT on both of them. But I do not charge it on postage to Non EU countries.
Tracy, you still have to charge it on postage and you will be charged it by Royal Mail - it is nothing to do with being registered for VAT.
The only difference is, if you are VAT registered, you can claim back what Royal Mail charge you.
One of my Swiss customers queried why postage had gone up when I increased it to take in to account the 20% VAT that now applies to EU countries. I then realised Switzerland is not in the EU and so I had to separate the two sorts of European postage so that I was not charging it to non EU European countries.
Tracy, you still have to charge it on postage and you will be charged it by Royal Mail - it is nothing to do with being registered for VAT.
The only difference is, if you are VAT registered, you can claim back what Royal Mail charge you.
One of my Swiss customers queried why postage had gone up when I increased it to take in to account the 20% VAT that now applies to EU countries. I then realised Switzerland is not in the EU and so I had to separate the two sorts of European postage so that I was not charging it to non EU European countries.
Let's be clear if you are not VAT registered you don't charge VAT. Unless you want to go to jail
Sorry, I phrased that badly. What I meant was that postage to Non EU countries incurs VAT which Tracy will be charged and which she could claim back if VAT registered.
Sorry for any confusion!
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