Charging VAT twice???

Jennifer Jones · ‎May 26, 2023

Hi all.....I'm new!

I manage a marina. I pay for utilities (inc vat) and then I charge my customers for the electricity they use (inc vat). Straight forward so far.

I also deal with the local council which reimburses me for my utility costs for the marina. Should this figure be inc or ex vat to the council?

Many thanks in advance.

Jen.

Ashleigh1 · ‎May 26, 2023

Hello Jennifer Jones, thanks for posting on the Community Page, we cannot advise on this as we are just technical support and not trained accountants. We would advise you speak to a trained accountant, HMRC or maybe even the council would be able to say which one it needs to be for you.

View solution in original post

Ashleigh1 · ‎May 26, 2023

Hello Jennifer Jones, thanks for posting on the Community Page, we cannot advise on this as we are just technical support and not trained accountants. We would advise you speak to a trained accountant, HMRC or maybe even the council would be able to say which one it needs to be for you.

paul72 · ‎May 26, 2023

Hi @Jennifer Jones

This is probably something that's specified in the terms of the agreement with the council.

If the payments are classified as a grant, the likelihood is they're Outside the Scope of VAT.

If the council is getting something in return, then it would be VATable.

Hope this helps.

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Charging VAT twice???