VAT Disbursements with EU Suppliers
I've only recently come across disbursements. I'm happy with the general form with UK supplier to a UK customer but how is it handled when there is an EU supplier? I can think of 2 possible options in this case but am not sure which if either is correct:
1.
We pass on the cost at the quoted net value and on our own return treat it as an EU purchase
2.
We pass on the cost at gross value and on our return have the input VAT.
For £100:
1.
Supplier Charges £100 to us which we pass on as £100 to our client. For VAT we have £20 to inputs and outputs.
2.
Supplier Charges £100 to us we have output VAT to pay of £20 and pass on £120 to our client.
Any help on this would be appreciated, I tried contacting HMRC but have not had an answer.
1.
We pass on the cost at the quoted net value and on our own return treat it as an EU purchase
2.
We pass on the cost at gross value and on our return have the input VAT.
For £100:
1.
Supplier Charges £100 to us which we pass on as £100 to our client. For VAT we have £20 to inputs and outputs.
2.
Supplier Charges £100 to us we have output VAT to pay of £20 and pass on £120 to our client.
Any help on this would be appreciated, I tried contacting HMRC but have not had an answer.
AAT Level 4, MAAT
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ACCA in progress
F4- Passed Aug 2020
F5- Passed Dec 2020
F6- Passed Sep 2020
F7- Passed June 2021
F8 - Passed Sep 2021
F9 - Passed June 2021
SBL -
SBR - Passed Mar 22
ATX - Passed Dec 21
APM - Passed June 22
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