If you buy a train ticket for you or your staff to travel to your clients’ office, it’s an expense and you must charge VAT on it when you recharge it to your client. If you are buying a train ticket for your client to travel with you to an event – you can pass the cost on as a disbursement and not charge VAT on it.
Do you charge VAT on travel expenses?
These include items like travelling expenses and your own postage and delivery costs. Costs that your business incurs itself when supplying goods or services to customers are not disbursements for VAT. … If you do show them separately when you invoice your customers they’re known as ‘recharges’, and not disbursements.
Is Travel exempt from VAT?
Even though most travel is zero-rated for VAT, car parking tickets are standard-rated. If you’re unsure about the rate of VAT applied to certain goods or services, check HMRC’s website or ask your accountant.
Do I charge VAT on mileage?
If you are VAT registered you must ensure that VAT is charged on all your billable expenses, even if you did not incur VAT yourself. … Mileage – if you’ve negotiated a rate of 45p per mile with your client, you will charge for the number of mileage times the rate and you’ll add 20% VAT.
Do I have to charge VAT to overseas customers?
VAT is a tax on goods used in the UK and you do not charge VAT if goods are exported from: Great Britain to a destination outside the UK. Northern Ireland to a destination outside the UK and EU .
How do you charge VAT on an invoice?
What you must do when charging VAT
- charge the right rate of VAT.
- work out the VAT if a single price is shown that includes or excludes VAT.
- show the VAT information on your invoice.
- show the transaction in your VAT account – a summary of your VAT.
- show the amount on your VAT Return.
What expenses are VAT exempt?
Common exempt items are insurance, Royal Mail postage services, rent (assuming no option to tax), education and vocational training supplied by recognised bodies, bank charges and interest, membership subscriptions to professional bodies, donations, salary payments, payments to HMRC, dividends and payments of loans.
Do I charge VAT on Labour and materials?
Any business that has a turnover (total sales inc labour and supplied materials etc) of £85,000 or more in any 12 month period, must register for and charge VAT.
Is train travel VAT exempt or zero rated?
3.2 The VAT liability of passenger transport that takes place both inside and outside the UK. Passenger transport that takes place both inside and outside the UK is zero-rated to the extent the transport takes place within the UK, irrespective of the carrying capacity of the vehicle, ship or aircraft.
Are taxis VAT exempt or zero rated?
The cost of travel tickets such as train fares and taxi fares is zero-rated for VAT. But there are two travel costs that sometimes do have VAT on them and sometimes don’t. These are carparking tickets and road tolls. Make sure you check your receipt for these costs to see if you’ve been charged any VAT.
Does 45p per mile include VAT?
HMRC say that the 45p per mile (or 25p) that you can claim for using your own car, not only covers petrol but it also covers wear and tear and other running costs. … And you can claim VAT on the petrol element of the 45p/25p.
How do I calculate VAT on mileage?
The advisory fuel rates are inclusive of VAT, so for example: VAT at 20% and advisory fuel rate being 21p per mile for a distance of 100 miles. The gross amount would be £21.00, which would equal 120% of the fuel cost, so the VAT element is calculated by dividing the amount by 6, thus VAT mileage amount would be £3.50.
Do I need receipts for mileage claims?
The answer is yes, you must keep the fuel receipts if you want to claim the VAT on the mileage expenses.
Do I need to charge VAT to European customers?
At the moment, for EU transactions, VAT is generally not charged on the supply of goods between businesses from another European country by the supplier. Instead, a business recipient is generally required to charge itself VAT, known as acquisition VAT, which is typically an accounting transaction on the VAT return.
Do you charge VAT on services to America?
The majority of goods exported to the US can be zero-rated for VAT. In other words, you do not need to charge VAT on the exported goods, or the extra charges such as shipping and delivery.
Is VAT payable on overseas services?
If the place of supply of your services is outside the UK you should not charge UK VAT but, as you may need to account for the local tax, you’ll need to consider the tax rules of the country into which you are making your supply.