I have recently taken up a client (VAT Reg company in UK)who is buying machinery from Italy and selling one in UK. Now the supplier company is adding shipping in the total price that is being charged to the client. My client is wondering whether he should also charge VAT on the shipping cost (adding shipping cost to the cost of machinery and charging Vat on the total price?) when he invoices his customer in UK??
Wonder if the disbursement/recharges rules apply here and how? and if some of you have come across a similar scenario.
Any help would be highly apprecitaed.