US EditionVAT Article – Disbursements vs Recharges
Summary by Ellacotts | Banbury, Kettering and London
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VAT Article – Disbursements vs Recharges
Many of our clients operating in both the goods or services industries recharge costs such as subscriptions, professional fees, travel and subsistence expenses to their customers. We often get asked whether there should be VAT on these charges and often the incorrect rate of VAT is applied. A disbursement is where a business acts (as an agent) on behalf of their customer in arranging and paying for goods or services. Most importantly, the underl…
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