Postage rate for customer is higher than what I set?

[bigbangrockin]

Hello I am in Australia and a buyer in the UK has received my invoice with a higher postage cost than the price I set. This is not VAT. I have sent my invoice with a $30 (Australian dollars ) postage rate. He's sent me a screen shot with the postage field saying $36 for the same service.

What would that be?

TIA

[gutterpunkz05]

I would think it is the  20% VAT that is applicable and added by ebay.  What makes you say it is not VAT.

[bigbangrockin]

Hi thanks,

He has posted a screenshot showing the total of the item has gone from $20 purchase price up to $24 with VAT (There's the 20 percent).

But in the postage field of his invoice he received it says $36, but I only set $30.

[gutterpunkz05 · Accepted solution]

VAT also applies to the postage.  $30  +  20%  =  $36

[bigbangrockin]

Thanks so much mate I don't think he realised that. I really appreciate your help.

[davewil1964 · Accepted solution]

VAT is applicable to the entire transaction. Postage is subject to VAT, therefore he pays your postage price PLUS VAT.

It's the same as GST. The charge is for goods AND services. Postage is a service.

[bigbangrockin]

Thanks very much mate.

[gutterpunkz05]

No worries,

Note, you will only  get a total of $50.  The vat component will be added, collected and remitted by ebay