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C
Courtney-Acc
February 3, 2023
Question

I am VAT reg company.I need to inv a non vat comp in USA for flights,materials. Some are zero rated.Can I send an inv partly with zero rated or do I put vat on whole lot?

  • February 3, 2023
  • 1 reply
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I would normally invoice one amount so am confused if I can invoice partly for vat expenses or not?

1 reply

paul72
paul72
February 3, 2023

Hi @Courtney-Acc 

 

Sorry - your question doesn't make a lot of sense.

You can invoice the customer whatever is agreed between you but...

(1) as you're VAT registered, you have no VAT expenses (this is reclaimed from HMRC)

(2) if the customer is outside the UK, they are not liable for UK VAT (other than in some special circumstances)

(3) flights - from memory - are not VATable anyway

C
Courtney-AccAuthor
February 8, 2023

Sorry I ran out of space on question.

So i have bought flights for a job which are T0 and some other materials that are T1.

I am a vatable company and an invoicing them now for a deposit to cover these expenses.

Can I invoice them seperately for flights and not charge vat or because I am vat registered, do I have to charge them for VAT on whole invoice. Example below

 

£5000 Flights

£1000 Materials

 

Net £6000

Vat £200 (only on materials)

Total £6200

Or does the entire net amount £6000 have to show vat £1200? 

paul72
paul72
February 8, 2023

Hi @Courtney-Acc 

 

There are a lot of ifs, buts & maybes to this.  Without knowing exactly what you're doing, where & why, there is no single, simple, answer.

 

As above, flights are not VATable if you bill them as flights.  If you bill them as general expenses, they (could) become VATable but for B2B, if the customer is outside the UK, this would be zero rated anyway.

https://www.gov.uk/guidance/vat-how-to-work-out-your-place-of-supply-of-services#the-general-rule-and-the-place-of-belonging

 

The goods can only be zero rated if/when they leave the UK.

https://www.gov.uk/guidance/vat-exports-dispatches-and-supplying-goods-abroad#vat-on-exports

 

Are the goods going to be exported after payment?

If so, the customer will not want to pay UK VAT.

 

I'd be tempted to raise as two invoices.  One for the flights & one for the goods but as you mention that this is a deposit - not a final invoice - you could make the goods invoice a Proforma so that the deposit is simply a payment on account.  Raise the final invoice once the goods are ready for export.

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