inter company vat charge

hello, We are 2 separate companies in the UK working under same corporate name. Company A have organised transport for the products and recharging company B for it. Company A has been charged VAT on the transport invoice, when company A recharge company B for this service do they need to charge VAT from company B ? Thanks for your reply.

Hi Tamara Sysojevax,
As the businesses are separate entities and not within a VAT group then recharges between the companies would normally attract VAT.
However if the supply meets the conditions of a disbursement then it would be Outside The Scope of VAT.
Please see the guidance below:
25. Supplies made by or through agents: other situations
Thank you.