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Post Info TOPIC: VAT when recharging a supplier


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VAT when recharging a supplier


Hi, We are a VAT registered business. One of our suppliers damaged one of our vehicles, we have had it repaired and I am raising a debit note to deduct it from the payment we are due to make. One of the invoices has vat on so no problem, but one of them is from a mechanic who isn't vat registered so no vat. my question is due I charge VAT on the debit note for the amount without VAT?

Any help would be greatly appreciated.



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Riel


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Riel wrote:

Hi, We are a VAT registered business. One of our suppliers damaged one of our vehicles, we have had it repaired and I am raising a debit note to deduct it from the payment we are due to make. One of the invoices has vat on so no problem, but one of them is from a mechanic who isn't vat registered so no vat. my question is due I charge VAT on the debit note for the amount without VAT?

Any help would be greatly appreciated.


Hi Riel

I would say that this may be able to be classed as a disbursement as you are not making a 'taxable supplies to your customer' if the supply for the van to be fixed is to your client and you are only acting as agent so to speak then you do not add VAT and you do not claim VAT as input either.



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Doug

These are only my opinions of how I see things and therefore should not be taken as advice



Veteran Member

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Posts: 47
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Thanks for that, I was confused over whether this would be classed as a disbursement or not as it was a supplier.

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Riel
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