Charging VAT on Promotional "Free" items

Das Kitty

I recently made an order with Vistaprint, my step-dad wanted some cheap business cards so I made them up on the website.

They have a promotion on for 250 free cards and a free card holder.

After abuout 30 steps you get to postage, and they charge postage (at a high rate). I would have said feck it and not continued if it were for me but I told my step-dad I would get him the cards so I carried on. When I got to the confirm order screen I saw that they had added the VAT on the free items (for their non-promotional price) as well.

Now, I did complete the order and that was my choice but I'm just wondering if charging VAT on items that are advertised as Free is OK?

maxer68

Vat can only be charged on the amount paid and cannot be charged on something that has no cost.

On vista print, you need to unselect various things as you go alonga nd select allow for vsita print line on the reverse of the card. If you keep the eyes open for all their tricks and click on 3 week delivery, you'll get the cards for delivery fee of €5.25 + vat.

If you don't watch carefully, the "free" order can add up to €50+ (They even put ryanair to shame with the add ons )

Das Kitty

Well here's what I got as an invoice

Shipment Details:
Quantity Price Shipping Tax
Business Cards 250 €0.00 €3.73 VAT:€0.78
Business Cards - Free Back 250 €0.00 €0.00
Foil Document Option 250 €0.00 €0.00
Matt Finish 250 €0.00 €0.00
Business Card Holder 1 €0.00 €1.83 €0.38

Goods Total Excluding VAT: €0.00
Shipping and Processing pre VAT: €5.56
Estimated VAT(21.00%): €1.16
Invoice Total: €6.72

So I was charged VAT on the shipping, I see now.

I don't like the way they operate, I won't be using them again.

borderlinemeath

It is tricky, but you can get a cheap order if you do it right.

I got 250 business cards and 2000 flyers for €26 delivered. Both with front and back info.

It's a pain in the ass, if you register then they bombard you with emails with "free" this and "free" that. Regardless of what you order you will spend some money (usually on delivery charges) but if you wait for the right email for order and get one that does free delivery then it can be worth your while.

They are a hell of a lot cheaper than others though. My local print shop would have cost over €100 for a similar order. Even if you go in and tell them what the internet competition charge.

Cabaal

In fairness they are entitled to charge for shipping,

Das Kitty

Never said they weren't.

I thought I was charged VAT on free items, looking at the invoice that wasn't the case.

I won't be using them again because I didn't get a good customer experience, the process took forever and they added the postage charge (which is enormous considering how long it will take) in the next to last step.

maxer68

It looks like they are apportioning the shipping fee to the 2 products. - Its more an accounting system than anything else.

As its a business to business site, vat will be chargeable on the shipping fee.

€6.72 incl vat for shipping is quite reasonable - many places charge up to €14.95 + vat