I have this situation where to separate jewellery businesses share a single electricity meter but only one business's name is printed on a bill. When the bill arrives, companies share it 50/50. Now the other company whose name is not printed on the bill wishes to file electricity expenses so they asked the other company for the invoice.
Logically thinking a jewellery business cannot issue an invoice for electricity supplied
I work for a company who shares their offices and they get an invoice for their portion of the rent/lecky etc from the tenant. Dont forget if the company issuing the invoice are VAT registered the invoice for the 'services' will need to have VAT included.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
So basically it is possible to issue an invoice for their portion of electricity, isn't it?
The company that gets invoices from electricity provider is not VAT registered, however the other one whose name is not on the electricity bill, is VAT registered. Does it affect the amount written on the invoice?
Will is be correct to issue an invoice and write in there "Charge for the part of electricity used" or something?
hi
Yes it is possible for the company that gets the invoices from the electricity provider to invoice 1/2 of the bill to the other company, however they will not be able to include VAT as they are not VAT registered. They can though just split the whole bill down the middle, its just that the 2nd company will not get the benefit of any VAT re-claim, but sometimes that just the way it is. Yes the description you have mentioned would be alright.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
And sorry to asking you again regarding VAT, I just want to understand right:
- if the original invoice from electricity provider is £498.60+£99.72 VAT=£598.32, and the first company cannot include VAT upon issuing their invoice for part electricity since they are not VAT registered, does it mean that the invoice shoud be £299.16 (£598.32/2)?
