Business Trip Abroad

[boredsenseless]

Yes, you most certainly should. If you are VAT registered you MUST add VAT to your invoice total, regardless of what the line items are or what country you incurred the expense in. You are not reselling your client a flight (you're not a tour operator), you are providing your client with a value-added service on which VAT is due. It just so happens that one element of your service is a flight on which you do not pay VAT, but that is irrelevant. Your client will have no issue with this and would almost certainly query it if you do not add VAT.

The only way to avoid it is if they buy the flight themselves for you as a passenger, but I'm guessing their procurement and admin charges are high enough to negate the VAT (even if they couldn't reclaim it which is unlikely)

[boredsenseless]

Remember that when invoicing for items (and you are charging VAT to the total invoice) you invoice the value minus VAT.

i.e. if you bought a car park ticket for £117.50 then you invoice for £100 and reclaim the 17.50 of your VAT.

The customer is invoiced for 100 + VAT which is £117.50. The difference comes about when train and air tickets are involved as these are VAT exempt (or zero-rated there is a difference but I' not going into it here) then the customer pays VAT on a non-rated supply, but as explained before the service of providing it is VAT supplied.

[hugebrain]

Thanks - I think I get the VAT now

I understand the VAT thing now.

I add up all the costs, take off the VAT on the taxi to Heathrow (all other stuff would be zero rated or have New York sales tax on it).

Then I add 17.5% to the invoice.


To whom do I pay income tax if my company pays me for the work (Dual National, USA domicile, British Resident and Ordinary Resident)?

[ratewhore]

I understand the VAT thing now.

I add up all the costs, take off the VAT on the taxi to Heathrow (all other stuff would be zero rated or have New York sales tax on it).

Then I add 17.5% to the invoice.


To whom do I pay income tax if my company pays me for the work (Dual National, USA domicile, British Resident and Ordinary Resident)?

Talk to your accountant...