I have a 'brain freeze' at the moment and need advice so would appreciate any help.
A client is on VAT Flat Rate scheme. He is invoicing his fees + VAT and adding grossĀ disbursements on which VAT is not charged. For the calculation of the flat rate VAT, is the gross turnover the fee + VAT or is it the fee + VAT + disbursements?
Thanks in advance for any assistance
Replies (3)
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Too vague - it depends
If they're genuine disbursements for goods or services provided to the customer and your client simply acts as agent passes on the cost to his customer, they're not sales.
But if they're his out of pocket expenses, rail fares, hotel bills for example, they're part of the price of his sales and are chargeable to VAT.
More detail on your question will get you more detail on my answer.