Vat on Credit Card Surcharge

Yazi

Hello

If goods are paid by your customer by credit card and you add a surcharge...would the surcharge be plus vat or be zero rated?

Thanks
Yas

jewels.p

Hi,

We had a query like this at work. A customer started ranting saying it was illegal to charge VAT on Credit Card Surcharges. (We charge them) I contacted HMRC as I couldn't find a definite answer on Google and they confirmed that you do charge VAT.
Hope this helps you.

Yazi

Thanks Jewels.p

Yas