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Posted Thu, 26 Oct 2023 13:04:42 GMT by Joanne
Hi We supply both kids and adult clothing. Rules state that we do not have to charge delivery on the kids clothes but what if the kids and adult clothes are both packaged together? What vat rate to use please? Thanks
Posted Fri, 27 Oct 2023 11:39:00 GMT by HMRC Admin 13 Response

Hi,

If you have a contract to deliver goods to your customer then the liability of the delivery charge will follow that of the goods being delivered.
If you have a contract to deliver goods consisting of different liabilities then I would recommend apportioning the charge between the 20% and 0% elements.
Please see the guide below:

Postage, delivery and direct marketing (VAT Notice 700/24)

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