A trader charges an extra €5 for posting an order and this full amount for postage is paid over to An Post. The €5 may be treated as exempt.
A charge is made for postage that is of a lesser amount paid over by the supplier to An Post. In this case the postal charge made to the customer is regarded as part of the total price of the goods or service supplied. This is subject to the VAT rate applicable to the goods or service in question.
A business providing a distribution service for magazines receives a volume discount for the postage from An Post. This situation depends on a number of factors, and the discount from An Post is not passed on in full to the customer.