Hi there, I have a client who collects debts for their client (debt management company) my client has paid an invoice relating to baliffs/high court fees which have VAT (on behalf of their client) on and has then charged their client these fee with VAT on, normally all court fee are classed as disbursements (not vat on) and T9 and I have been advised by my accountant to post these costs/recharges against sage code 1102 so in theory should = zero at the end of the day, question and sorry its a bit long winded, should my client be reclaming VAT back on bafliffs charges and should he be charging client VAT on sales invoice re disbursement? Any advise would be appreciated. Thanks
I would think claim the vat as usual and charge the net amount plus vat to client for vatable supply and just charge as disbursement the court fee, so the amounts cancel eachother out.
Thanks Rob appreciate reply especially as have just joined forum, I did not realise how good this forum is, especially as I have been a bookkeeper for about 4 years and it can be pretty solitary when working, so great place to be able to ask queries and also help others, Thanks
