VAT query on a charge refunded

kazzie100kazzie100 Just JoinedPosts: 1Registered
Hi. I am new to this but hope someone can answer my query.

My company have received incentive income from one of our service providers - they provided a self billing invoice for this. We were then charged an amount for business throughput shortfall - they provided a vat invoice for this. Both the incentive income and the shortfall charge were subject to VAT which we treated in the usual way.

The service provider then agreed to waive the shortfall charge and has refunded us the net amount, but not the VAT charged. I queried this and they have stated they are unable to refund the VAT and I can claim it as input VAT in the usual manner.

Is this correct? I can not find anything on the HMRC which covers this.

Many thanks

Karen

Comments

  • T.C.T.C. Experienced Mentor Posts: 1,448Registered, Tutor
    Right or wrong from their point of view, if you have been charged it and this was not refunded, then yes, you should reclaim it - just keep a note on the records.
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