I work for a small property management (factoring in Scotland) company.
The homeowners appoint us to manage their common property. We organise repairs and services on behalf of the clients and charge a management fee for doing so.
My question is, if a contractor has not charged us VAT, should we be adding VAT to this on our invoice when we send it out? We charge VAT on management fee and other admin. I worked for a much larger company that did the same thing and we did not charge VAT where the supplier was not VAT registered however our accountant believes we should.
Should we be charging VAT on non VAT items? How did my previous employer get away with not doing it?
Any help is appreciated.