Good morning all,
I’m hoping that someone can help me out. I’ve had a new client approach me who is in the vodka business. As I’ve never had anyone in this trade before I just wanted to check a few things before I agree to take her on.
They are saying that they pay zero VAT on production costs (invoice does show this) and zero VAT when the goods are released from the bonded warehouse. Is this correct? Surely they would? the figures shown below is actually what came out of the bank account without any VAT paid?
Could someone please advise me if this is correct? if so do I need to account for any VAT on the next VAT return and if so how? Does the client then have to pay this VAT?
- Excise Duty: 975.14
- Value for VAT: 1416.90
- VAT: 0.00
- Excise sub Total: 975.14
- Grand total 975.14
Thank you for any help in advance.