VAT Disbursement.

Wyn
Wyn Registered Posts: 7 Regular contributor ⭐ ? ⭐
I wonder if someone could clarify something for me?

A client is switching banks and applying for a loan.
The new bank wants a valuation on clients properties.
A valuer is appointed and charges £2000+vat. The bank is invoiced and pays.

The client is then charged with the £2500 from the bank.

I am seeking to recover the vat element but the bank says I cannot as they have claim to it. They will not issue an invoice or disbursement notice other than the copy invoice from the valuer which they have claimed from HM

How do I recover the VAT? and/or convince the bank they are wrong(if they are!)

Thanks

Comments

  • Neillaw
    Neillaw MAAT, AAT Licensed Accountant Posts: 307 Dedicated contributor ? ? ?
    You cannot recover the vat as the invoice isn't yours.

    I have always been informed that this is due to vat rules for banks, they don't charge vat on bank charges but they do charge vat on audit letters.

    I'm afraid that it is a case of losing the vat on this one.

    Thanks
  • T.C.
    T.C. Registered, Tutor Posts: 1,448
    Agreed. The only way this can be avoided is if the bank allow the client to pay the fees direct to the valuation company. Sometimes they will. However, it is also worth noting that if the properties are residential properties then the VAT can't be reclaimed anyway.
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