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Posted 9 days ago by John Clark
We have a situation where an external company is billing one of our unit companies (Hereafter called Company B) and the invoice is addressed to that unit company (Company B). However, due to an agreement made with that unit company, the head office (hereafter Company A) is expected to pay and record the costs in their books. Company B does not have the facility to pay the external company and recharge Company A. The external company will not charge Company A as their agreement for the services is with Company B. As Company A and B are in the same VAT group (along with others) and only one Group Vat return is submitted to HMRC, can company A claim the VAT. Generally, I'd think not, but as it all goes in under one vat return, I'm not sure if it's at least allowable. Thanks
Posted 8 days ago by HMRC Admin 21 Response
Hi,
If company B have received a supply and have a VAT invoice for the supply and the VAT is incurred in the course of their business then they should recover the VAT on the group VAT return subject to the normal rules of input tax:
10. Introduction to input tax.
Thank you.

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