Per diems and expenses - charge VAT?

Per diems and expenses - charge VAT?

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A consultant operates as a VAT registered limited company. In addition to the fee, a client also pays the consultant a per diem allowance and reimburses other expenses (travel, accommodation). Should the consultant be adding VAT to the expenses and per diem allowances?

Any comments gratefully received.

Paul
Paul Drohan

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By AnonymousUser
19th Jan 2006 13:12

Yes
These are outputs of the business and/or expenses incurred on the client's behalf. VAT applies, even to items such as train fares where VAT has not been suffered.

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