Donate SIGN UP

Vat - Company Expenses

Avatar Image
Arrods | 09:58 Sat 20th Dec 2014 | Business
4 Answers
(From a VAT virgin!). If an employee purchases something for the (VAT-registered) company and then claims the money back through their expenses, can the company treat this as a purchase themselves for VAT purposes? If so, presumably they must be able to provide a proper VAT receipt?

Sometimes though, such purchases are made along with the employee's weekly 'big shop'. So you might have a metre long till receipt for the employee's food etc which also shows that you have bought a camera for the company which you will be reclaiming on expenses. I don't recall till receipts automatically displaying any VAT element, so do you simply ask for a VAT receipt? If so presumably it would show the VAT element on all the items subject to the tax (including one's own purchases)? Or is the best thing to purchase and pay for the item separately and ask for a VAT receipt?

Any advice appreciated. Ideally, I'd like to prepare/find a guide showing which of the typical office purchases (e.g. soap, loo rolls, stationery, pens) are VATable. Many thanks.


Gravatar

Answers

1 to 4 of 4rss feed

Best Answer

No best answer has yet been selected by Arrods. Once a best answer has been selected, it will be shown here.

For more on marking an answer as the "Best Answer", please visit our FAQ.
Its always best to purchase the items seperately at the end of the big shop and ask for a VAT receipt.
PS its easiest to assume everything is VAT at the standard rate as its really only food, drink, books and childrens clothes that are not.
If I'm buying anything for work I always pay for it separately. Never have any trouble in the shops when I mention it.
This is why true trade suppliers like Costco and similar outfits show specifically which items are VATable and which are not on the till receipt. To make it easy for the business traders in the warehouse.
Do as the above responders suggest

1 to 4 of 4rss feed

Do you know the answer?

Vat - Company Expenses

Answer Question >>

Related Questions