Client is VAT registered Company A) and subcontracts to a company (Company B).
Company A is paid for labour and work + VAT from company B, no problems there. Company A also claims expenses incurred from company B, which they pay them, inclusive of VAT.
So on the VAT return, first one is due Jan 7th, is box 1 labour VAT PLUS VAT received from company B regarding expenses?
Apologies, I can't quite seem to get my head around this one.