VAT on refunds

[neilsolaris]

Hi,

Can I ask if VAT is due, if a company pays an advanced refund to a supplier for their traveling expenses (the supplier is VAT registered)?

I'm guessing the answer is yes, and if it is, isn't it the responsibility of the supplier to request the VAT? And if the supplier didn't bring the issue up, the company doesn't need to concern itself with it.

Thanks for your help.

 

[Scalloway]

Can I assume that you will be charged for the supplier's travelling expenses when they take the journey? My thought would be to put it through the books as a loan and sort it out when the bill is received.

 

[neilsolaris]

From what I understand, they've bought it already, and the job is going to be happening very soon after.

The loan idea sounds good, as long as I'm provided with sufficient detail later so I can match it up.

 

[Spur Support Services]

Ask them to raise a bill for the travel costs, before you pay it.
If they include VAT on the bill then reclaim it.

 

[neilsolaris]

Thanks for your advice Spur. On this occasion, the director paid the travel costs, without VAT, and showed me the receipt for the travel costs. So I think I'll just leave it like it is, and enter it without VAT on Quickbooks. If the supplier doesn't request any VAT then I guess it's not really our problem?!

 

[neilsolaris]

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