When charging a customer for goods and they are paying by credit card we normally charge a 4% surcharge on the net amount of the invoice and do not charge VAT on the surcharge. Is this the correct proceedure as there seems to be conflicting information?
4.7 Accounting for VAT on retail credit, debit and charge card sales
If you are a retailer:
you must account for VAT at the time of supply (see Notice 700 The VAT Guide) on the full price charged to the customer for the goods/services supplied, and
if you charge for accepting payment by one of the above cards, the charge is further consideration for the supply of goods/services. VAT is chargeable at the same rate as the goods or services supplied.
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Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
