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I am delivering a ontract fr the IoD. I am paid for that work and expenses incurred.
I then invoice the IoD for the fee(towhich add VAT0 - I know that-
Part of that invoice included the expenses I have incurred delivering the contract. I am then reimbursed by the IoD for those expenses.
So my question-
1. The expenses are tabled on a sheet, which of course include VAT.
2. Do I then add VAT to the overall total?
3. or, do I separate the VAT out, showing it seperately.
4. Then add VAT on the overall expneses?
I hope that helps.
Thanks.I have many clients who incur expenses when they do a job for a customer and they have different ways of doing it. On their invoices, most show the net of VAT fee for the job, the net of VAT expenses or disbursements they have incurred and then add VAT to the total as applicable on any items on which VAT is chargeable. Others uplift the expenses a little and then add VAT so they make a bit of profit on those expenses. I hope this helps but let me know if you have any further questions.