Zero rated items

[Richard 1972]

Hi all, can anyone help?

I rent out vans for £200 per week inclusive of VAT. I have 2 zero rated items; 1) insurance, 2) road tax. Can anybody advise how I should lay out on my invoice.

 

[Scalloway]

If you are hiring the van for an inclusive price of £200.00 then your invoice will be:

Hire of van including insurance and road tax.........£166.67
VAT at 20%.....................................................................£33.33
TOTAL............................................................................£200.00

Because the insurance and road tax are included as part of your service you must charge VAT on the whole price.