How do you calculate how much VAT I'm charged?

We calculate VAT based on the VATable products in your order, your delivery charge, and any money-off vouchers you might have used.

VATable products include alcoholic drinks, confectionery, and some other not-so-healthy snacks. On your receipt, you'll see these items marked with an asterisk: *. VATable products are taxed at the standard rate of 20%; you can read more on the Government's VAT info page.

Delivery charges and money-off vouchers are not charged at the standard rate – the taxman doesn't make life easy – both are currently taxed at a rate of 6.1%.

Here's an example of how we work out VAT:

One of our customers, Mr Hammond, ordered an £8 bottle of wine with his shopping. The 20% VAT came to £1.33.
Mr Hammond had a delivery charge of £5.49. The 6.1% VAT came to 31p.
Also, he had a money-off voucher for £10. The 6.1% VAT came to 57p.

(Product VAT: £1.33) + (Delivery charge VAT: 31p) – (Voucher VAT: 57p) = (Total VAT paid: £1.07)

So, overall, Mr Hammond paid £1.07 in VAT, which was shown on his receipt.

(VAT rates for VATable products, delivery charges and vouchers correct as of December 2016.)

Was this article helpful?
3 out of 4 found this helpful