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Post Info TOPIC: Claiming Back VAT (with a middle man)
dandiego25


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Claiming Back VAT (with a middle man)
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Hi all,

I have a client who leases out studio spaces within a large building. My client is not VAT registered but some of the tenants are. My client charges the tenants for the electricity they use.

Some of the tenants wish to claim back the VAT on electricity which has been charged to my client by the electricity supplier.

Does anybody think this is possible?

In my eyes, the fact that my non-VAT registered client is the one invoicing the tenants for the utilities means that unfortunately the tenants have no right to claim back the VAT, even if it is included in the figures which formed the basis of the charges on their invoice.

My client has suggested putting the electricity companies VAT numbers on the invoice but I just don't see this as an above board practice. I think my client would potentially end up liable for any VAT claimed back back it's tenants.

 

What are your thoughts?

 



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Daniel

 

Be kind, be bold and be grateful!
Cheshire


Master Book-keeper

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How would the tenants know how much the VAT is being charged at to be able to claim it back when they havent got a VAT invoice.

Gawd the things people dream up!



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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
Cheshire


Master Book-keeper

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Is your client listening to his mates down the pub?!

Gotta love em.

__________________

 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
dandiego25


Member

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Posts: 10
Date:
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Joanne you can imagine the look on my face!!

He was saying 'just whack 20% VAT next to the cost of units used and it's sorted'. 

Glad I'm not being dumb. Will stick to my guns.

 

Thank you aww



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Daniel

 

Be kind, be bold and be grateful!
leshoward


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Tenants can only claim VAT on electricity bills, in the circumstances you describe, if they have separate meters.

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