Recharging costs to a customer
There are many incidental costs the University might incur that must be included in VAT calculations when it invoices customers. These include items like travelling expenses .
Examples of costs where VAT will be added are:-
- an airline ticket that you buy to visit a customer, if you recharge the cost to your client you must charge VAT because the flight was for you, not for the client
- postage costs you incur when you send letters to your customers, these are normal business costs and you must add VAT if you recharge them
- a bank transfer fee paid when transferring money from your business account to a client’s account - even though the bank’s fee is exempt from VAT, if you recharge the fee you must charge VAT, because it was for a service provided to the University and not to the customer