I think this has been asked before but am struggling to find it. If a VAT registered entity charges non-vat expenses, e.g. train tickets, in connection with a vatable service am I correct in thinking that the whole lot is vatable?
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Remember what a disbursement is
If you have paid for something that is the customers liability e.g. bought their train ticket, that is a disbursement.
If you have paid for something that is your liability e.g. bought your own ticket, then if you recharge this to the customer then this is part of your supply to the customer and the VAT status follows that of the main supply.
Who got on the train?
If it was the VAT registered supplier, VAT should be charge. If it was the client it was a disbursement so no VAT.