Share this content
5

VAT TOMS

How should Sales Invoice look

Didn't find your answer?

My client is a small IT contractor (VAT Registered).  Oddly, he has been asked by one of his suppliers to also make some supplies that fall under the VAT TOMS.

I understand that VAT would not be shown on TOMS supplies on his invoices so should his sales invoice look this way:-

IT Consultancy  £1,000

TOMS Supplies  £900*

VAT   £200

Total  £2,100

Asterisk will relate to TOMS blurb in the invoice footer.

Note that this question is not about the TOMS calculations/VAT returns but just about the practicalities of Sales Invoicing.

Thanks

Replies (5)

Please login or register to join the discussion.

avatar
By WhichTyler
18th Jul 2019 15:36

Eh? do you mean 'asked by a customer'?

Is your client then acting as a tour operator? Or is it perhaps his customer that is?

If he's not in the tour operating game, then his supplies to a tour operator follow completely normal rules, and its up to the operator to sort out what can and can't be claimed

Thanks (1)
RLI
By lionofludesch
18th Jul 2019 17:59

Tell us how this supply falls under TOMS.

Thanks (0)
avatar
By Sherman Holter
18th Jul 2019 18:26

The additional services are nothing to do with his IT work.

One of his customers is a training company and they have asked him to supply accommodation and travel for their customers (they became aware that he has previous experience in the field). He estimates that this will ultimately equate to about 35% of his turnover.

Thanks (0)
Replying to Sherman Holter:
avatar
By WhichTyler
18th Jul 2019 18:52

If I were him I would either:
a) turn it down politely
b) sort it but with all bills going directly to customer (and add a margin to the IT consultancy)
c) think about setting up a separate co to handle travel (think about bonding, guarantees etc let alone TOMS). It's a low margin business with more faff than IT consultancy
d) at the very least don't put IT consultancy and tour ops on the same invoice
e) turn it down politely...

Thanks (1)
Replying to Sherman Holter:
RLI
By lionofludesch
18th Jul 2019 19:51

Sherman Holter wrote:

The additional services are nothing to do with his IT work.

One of his customers is a training company and they have asked him to supply accommodation and travel for their customers (they became aware that he has previous experience in the field). He estimates that this will ultimately equate to about 35% of his turnover.

As Which says, I wouldn't mix these very different activities in the same company.

For me, it's a new company or say no.

Thanks (0)
Share this content