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VAT on travel

Hi,

A VAT registered client has to pay an individual for services performed at a rate of £100 and in addition to pay some travel expenses incurred £10.

Should the payment be £100 plus VAT = £120 plus travel expenses reimbursed of £10 = £130

Or should it be £110 plus VAT = £132

Thanks

Matt

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VAT on full amount

so £132

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You mention that the payer is vat registered but not the individual who did the work and is being paid.

If the individual being paid is vat registered then they should charge your client £100 +vat for the work done and £10 +vat for the travel expenses incurred

However if the individual being paid is not vat registered they should charge your client £100 for the work done and £10 for the travel expenses incurred

Depending upon the travel that is being re-imbursed - it is not unusual for the contractor to ask the sub-contractor to provide the purchase receipt for the travel. The sub-contractor should always keep the original to use in his accounts and vat reclaim and provide the contractor with a copy.

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