Hello
I was wondering if you could provide an answer to a VAT query I
have.
If a VAT registered Company purchases an item on behalf of an
employee and pays £120.00 (£100 + £20 VAT). Should the recharge to the
employee be £120.00 (£100 + £20 VAT), or £144.00 (£120 + £24 VAT)?
Many thanks
Sarah
They can sell it at cost plus VAT, which will be £100 + £20, or they can add a mark up.
Some employers allow generous discounts. Some allow cost price (always + VAT), some add a percentage to cost (again plus VAT) and some allow a discount off the retail price (again, VAT is always chargeable)
