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  • VAT on referral bonus

    Hi. Is the referral bonus received by the VAT registered company from the insurance company subject to VAT?
  • Query Regarding VAT Return - Sales to Other EU Countries Shipped from EU Fulfillment Centre

    Hi, I am writing on behalf of a company that is VAT registered both in the UK and France.
    They are engaged in selling goods to customers within the UK and also to customers in other EU countries. The company operates a fulfillment centre within the EU, from where some goods are directly shipped to customers located in other EU countries. They are currently preparing their VAT return and have a query regarding the reporting of these sales in Box 6 of the VAT return.
    As per the guidance in VAT Notice 700/12, section 3.7, they are required to show the total value of all their business sales and other specific outputs but exclude any VAT. The guidance provides an example of supplies that are outside the scope of UK VAT, specifically referring to Place of supply of services (VAT Notice 741A).
    We would like to clarify whether this guidance also applies to goods that are shipped directly from their EU fulfillment centre to customers in other EU countries.
    Therefore, our question is:
    Do they need to include the sales of goods shipped directly from their EU fulfillment centre to other EU countries in Box 6 of their UK VAT return?
    Or should these transactions be considered outside the scope of UK VAT and not included in the return?
    Your clarification on this matter would be greatly appreciated to ensure accurate reporting in their VAT return.
  • VAT calculation for goods sold on Amazon

    Hi, VAT registered company is engaged in selling goods through Amazon's platform. They have been following the cash basis VAT accounting scheme and have encountered a specific scenario related to the VAT calculation on their sales. Amazon transfers funds approximately every two weeks into their comapny's bank account. However, they also reserve a certain amount from these transfers, which is later released at a different time. Our question therefore relates to the VAT treatment of these transactions during the VAT period. As per VAT guidance in VAT cash accounting scheme notice 731, section 5.2, it states that if an agent collects payments on your behalf, you must account for VAT on the supply in the VAT period in which the agent collects payment from your customer. Their concern is whether Amazon can be considered an "agent" in this context, and whether they are required to account for VAT when Amazon receives money from their customers, even if it includes the reserved amount that is not yet transferred to their bank account. Thank you.
  • Shareholder expenses

    Hi, The company pays for the shareholder's hotels, flight tickets and food while on business trips. Can the company claim it as an allowable expense for Corporation tax purposes? The shareholder is neither an employee nor a director of the company.
  • VAT reverse charge

    UK VAT registered business received software development services from an individual who is based in EU country. Does it mean that the company has to account for VAT under reverse charge rule? Thank you,
  • Shareholder expenses

    Hi, The company paid for flight tickets and hotel for its shareholder who is not an employee. Would it be classified as business entertainment therefore VAT input tax recovery blocked? Thank you,
  • B2B Services tax point

    Hi, Company A (UK based VAT registered business) provides services to the company B based in the EU. Company A received advance payments in 11/2022 and 12/2022 but issued invoices in 02/2023 only. (after services performed). Company B is VAT registered in the EU so services are 0%. The VAT period is 01.11.2022-31.12.2022. Do we have to include those sales in Box 6 even though invoices issued in 02/2023 only?
  • VAT group GG account

    Hi, Two companies recently formed VAT group. Prior VAT group registration one company had its own government gateway account. This company also had VAT number which has been cancelled as a result of VAT group registration. Does it mean that they need to create a separate government gateway account in order to add VAT services and be able to set up a Direct debit for VAT payments?
  • Stolen asset

    Hi, The company bought some tools in the year ending 31.03.2021. They also claimed 100% capital allowance. This year one of its tools has been stolen. The company did not get any insurance proceeds. Does it mean that a balancing charge does not arise as it did not receive any sale proceeds? If so what evidence is needed?
  • RE: Meal allowance

    Also, does it change anything if the driver travels different routes?