Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Thu, 28 Apr 2022 08:13:43 GMT by Becci Strange
We have a customer based in UK - they have an end user based in Europe, we ship goods to Europe via a freight forwarder on behalf of our customer. The freight forwarder passes costs of customs/duties on to us, which we then pass on to our customer (Based in UK), we invoice UK. My question is: Should we be charging our customer Vat on these costs?
Posted Thu, 28 Apr 2022 11:41:17 GMT by HMRC Admin 10
If you are Vat registered in the UK and pass on costs to another company in the UK then these would be classed as recharges and VAT would be charged.
The only instance where VAT wouldn't be charged is if these these charges are considered disburements.
Please see the guidance below:
Supplies made by or through agents: other situations
Posted Wed, 22 Jun 2022 06:36:14 GMT by johnydvd
When you sell goods or services, you must do the following: work out the VAT-inclusive price using the correct VAT rate (standard, reduced or zero-rated) show the VAT information on your invoice - invoices must include your VAT number and display the VAT separately show the transaction in your VAT account - a summary of your VAT record the amount on your VAT return.

You must be signed in to post in this forum.