Hi,
We've incurred some costs on behalf of another group company, who are in a different VAT registration. On the original invoice VAT wasn't a straight 20% on all parts.
When I recharge the group coy do I charge VAT on the whole amount I'm recharging, and is the amount I'm recharging the ex-VAT amount or including VAT amount?
(e.g. if original bill £100 + £10 VAT in total, am I now recharging £100 + 20% or am I recharging £110 + VAT)?
Thanks
Replies (3)
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VAT: The Devil's in the details
What are you recharging for?
Is the recharge part of a larger contract or other supply?
Have the goods or services been altered or part used before you pass them on?
Are you sharing costs or is this all their responsibility?
Why didn't they buy it direct?
Why wasn't VAT on all parts, is part of it exempt, zero rated, an export, secondhand goods etc.?
There is no special rule for recharges between different VAT registrations, there may be a possibility that it's a disbursement and you just pass it on as is, otherwise it's the same as any other supply we'd need to know what you're selling them in order to know whether you charge VAT.