A VAT registered client has a client in the USA. Part of the agreement is that the client in the USA will pay for the travelling expenses of staff / contractors. My client engaged an american living in America to do some of the work. The contractor incurred expenses, submitted a claim form and these were then recharged to the client in the USA. As there is no VAT on the sales invoice (place of supply), I am assuming then there is no VAT on the recharged expenses as there would be for a UK client.
And I assume the process is the same for the clients in the EU - Zero Rated EU services on both the sales and recharged expenses invoices?