Elizbeth Bonner

Hi We have a client who works on film production sets across the world. The client is engaged with a UK customer providing film services in Malta. The client has been requested to pay for their accommodation which is for 60 days in Malta where the filming is taking place. The customer has then reimbursed the client for the accommodation. The customer has only requested the client to pay for the accommodation as they were having card issues. Would the accommodation be classed as a disbursements as this was intended to be paid by the customer due to the location of filming, or would this be a recharge and therefore applicable to VAT? The client was the only user of the accommodation paid but it is required to perform the film services as they are often in locations requiring travel. In addition to this, a per diem for subsistence is charged to the customer including VAT for the recharged expenses. Thanks