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VAT billed expenses
Hello,
I've billed an expense to a cient via the 'add unbilled expenses' command in the invoice creation view. The expense was an airline ticket which (when I look at the line item in Expense view) shows 0% VAT charged as seems customary for the Travel category.
In Invoice view however the line item for this expense shows 15% VAT being added to the VAT I am charging my client. Is this normal? If so, can someone explain why?
Thanks!
Steph
I've billed an expense to a cient via the 'add unbilled expenses' command in the invoice creation view. The expense was an airline ticket which (when I look at the line item in Expense view) shows 0% VAT charged as seems customary for the Travel category.
In Invoice view however the line item for this expense shows 15% VAT being added to the VAT I am charging my client. Is this normal? If so, can someone explain why?
Thanks!
Steph
I’m confused
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Inappropriate?Yes.
If you were an airline supplying airline tickets you would charge vat at 0%. But you're not. You are a consultancy or similar and consultancy services are charged at 15%. It just happens that part of way of calculating your fee is based on direct expenses.
If you work it through, you get to charge an extra 15% but have to pay it straight to the vatman, whilst the client has to pay an extra 15% but claim it straight back from the vatman, so everyone ends up level.
