Hi. I wondered if someone could clarify if I could bill the following as a disbursement and therefore not charge VAT:
The company I work for are VAT registered. We recently arranged for an individual to come and give a training session to some of our employees but also some external individuals on the basis that they contribute to the fee. The person who gave the training session is not VAT registered so therefore we've not had to pay VAT on his costs. Can I therefore invoice the individuals that attended the training without charging VAT? We're not making any profit on the transaction and we're only recharging on part of the cost.
No, you will have to charge vat I'm afraid, the only way around this that I can see is if the non vat registered trainer invoiced the other guys direct.
