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Posted Wed, 28 Feb 2024 12:35:48 GMT by Colin Wallace
We get charged per sales invoice that we load onto a customers platform (similar operation to EDI). Should we pay VAT on this charge?
Posted Wed, 28 Feb 2024 14:32:28 GMT by HMRC Admin 25 Response
Hi cswall17,
If this fee is being charged by a freight agent then they will charge VAT for most of their services performed in the UK.
We would recommend relaying this question to them.
Here is the guidance for the liability of different freight services:
4. VAT liability
Thank you. 

 
Posted Wed, 28 Feb 2024 14:51:13 GMT by Colin Wallace
No, we sell product to this customer, they then re-sell this product in their stores. We have to load our invoices on their system (in order for us to be paid) and they charge a fee per invoice loaded. Every two weeks they bill us for processing these invoices, but do not charge VAT
Posted Wed, 28 Feb 2024 17:04:12 GMT by HMRC Admin 20 Response
Hi Colin Wallace,
If the company is VAT registered and are charging this fee, possibly an admin fee, then it would be a taxable supply and hence VAT charged on the fee.
Thank you.

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