I have a client who has been on a business trip to the US and incurred expenses, hotel, car hire and meals, that are to be recharged to the company (based in the UK) who employed the services of his limited company which is VAT registered.
I understand the treatment if the expenses were incurred in the UK. The other company are insistent he should not charge VAT as the expenses are only subject to VAT in the US. Should he add VAT to all the costs when he invoices, or none? Personally I think he should add the VAT but I do want to be 100% certain.
Your thoughts would be much appreciated, thank you :)