Quote:
Originally Posted by Baseball Fury 
Tis a stupid system, but our government came up with it, so of course it's obtuse.
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Sort of but then it makes perfect sense when applied to the UK, else it would be open to extreme abuse. Basically any item that is VAT liable has to have VAT liability on the shipping too.
The scenario could be
Amazon/ Play etc : Item £5.00 - Shipping £9.99, so they could get away with only paying VAT on the £5