recording sales to non uk business on VAT return

How to record sales of services and recharge of expenses to business based in UAE on VAT return

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Background to this question is a UK limited company has provided consultancy services to a business based in UAE. The expenses incurred (flights, meals, hotels etc) will be recharged and added to the invoice. My dilemma is how to account for this in the accounting software and subsequent VAT return. Does the reverse charge mechanism apply to everything on the invoice (payment for the service and reimbursement of expenses) and would it all be out of scope for VAT even if incurred in UK? If this is correct then how should the expenses be recorded as an outgoing transaction from the bank account in terms of reverse charge/VAT?

The accounting software I am using is FreeAgent if this helps unravel my question!

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By David Ex
25th Apr 2024 21:45

Speak to your accountant. You don’t want to get it wrong.

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