I just used the online shop to pretend to order 2x "small" kids home shirts - checkout price is showing as £84 + postage (seems right to me - £42 each)
That said, I also had a look around the internet - even HMRC site says you should be charged VAT at "zero rate" on kids clothes up to a certain size (generally 14years old as per their size guidance, with some exceptions....zzz)
As far as I understand......"Zero rate VAT" is different to VAT free - they have to record the sale at "Zero VAT rate" for VAT purposes - it's different to "no VAT" or "VAT free", but has the same effect on the total cost of an item as not applying VAT at all...zzzzzzzz.........zzzzzzzzzzzzzzzzzz
bluekeith said:
just bought 2 new kids shirts today total cost £102.51 why have I been charged £17.09 VAT ? I thought kids clothes did not have VAT on them ? If anybody could help ?
The £17.09 isn't even the correct VAT at 20% for £84, it should be £16.80 and....£84+£17.09 = £101.09, not £102.51 - something very wrong with those figures.....
If 20% VAT had been applied it should be £84+16.80=£100.80