Twice the V.A.T???

S4R4H

Hi,

Really hope someone is able to help.

I currently do the books for my husband's franchise with a courier firm and he has decided to register for VAT.

I will need to file the first VAT return at the end of February, so am getting my head around what we can and cannot claim for.

My husband has a fuel card, provided from the courier company. He is currently paying the VAT on the fuel and also the VAT on the total fuel amount from the courier company. Effectively, he is being charged for VAT on this fuel twice!!!

Can we claim back the VAT twice - i.e. the VAT cost from Shell and the VAT cost from the courier company?

Hope this makes sense.

Many thanks for any replies.


Sarah

Aquamania

S4R4H wrote: »

Hi,

Really hope someone is able to help.

I currently do the books for my husband's franchise with a courier firm and he has decided to register for VAT.

I will need to file the first VAT return at the end of February, so am getting my head around what we can and cannot claim for.

My husband has a fuel card, provided from the courier company. He is currently paying the VAT on the fuel and also the VAT on the total fuel amount from the courier company. Effectively, he is being charged for VAT on this fuel twice!!!

Can we claim back the VAT twice - i.e. the VAT cost from Shell and the VAT cost from the courier company?

Hope this makes sense.

Many thanks for any replies.


Sarah

When we registered for VAT, we were invited to a beginners guide to VAT lecture, sent various reference material from the VAT office, and even got a video that explains the basics.

Not sure if they do this now, or if it's all online instead.

There is still the VAT helpline that I know exists and they are very helpful. Give them a call and ask

WestonDave

Can you clarify whether your husband actually pays for the fuel at the petrol station or just picks up a petrol receipt? I'm struggling to see how firstly the fuel card is relevant if he's paying VAT because surely the point of the card is you put the cost on the card, and secondly if he is paying VAT twice how he's doing that without paying for the fuel twice as well!

pelirocco

Is the courier company charging the gross price per litre? for the fuel? , if so they have either mesed up , or more likely charging a premium price for the fuel

You only claim back VAT on the invoices you are liable for . ie the vat amount on the invoice from the courier company

S4R4H

Thanks for all the replies - I have managed to pick our Accountant's brains, after finally being able to get hold of him (SA tax returns were drowning him, lol) and you are right, we can only claim the VAT once.

It may be time to do away with the fuel card and start putting it on the credit card instead - might save some money that way

pelirocco

S4R4H wrote: »

Thanks for all the replies - I have managed to pick our Accountant's brains, after finally being able to get hold of him (SA tax returns were drowning him, lol) and you are right, we can only claim the VAT once.

It may be time to do away with the fuel card and start putting it on the credit card instead - might save some money that way

Or get your own fuel card ? , or question why he is working for a company that may be ripping him off !

JasonLVC

S4R4H wrote: »

My husband has a fuel card, provided from the courier company. He is currently paying the VAT on the fuel and also the VAT on the total fuel amount from the courier company. Effectively, he is being charged for VAT on this fuel twice!!!

Can we claim back the VAT twice - i.e. the VAT cost from Shell and the VAT cost from the courier company?

I'm not understanding the question - sorry. So are you saying hubby has a fuel card provided to him by the courier company? If so, then when using the fuel caard there is nothing to pay at the till and at end of the month the card owner (courier company) gets a bill.

The courier company are then raising an invoice to hubby plus VAT? Is that what's happening. If they are just taking their fuel card invoice and recharging at cost or adding 10% admin charge on, either way the invoice to you would be plus VAT - but its only one element of VAT that you are responsible for, but it'd be easier to just stick on accredit card - you'd get Tesco points or cashback too.

I just don't understand how hubby can use a fuel card that belongs to someone else but ends up paying the bill from the fuel card company and then again from the card owner.

It might be just me on a Friday afternoon but if you are thinking you are getting charged VAT twice, are you paying the fuel bill twice too?

JasonLVC

Upon 1st VAT registration, don't forget you can reclaim VAT on purchases of goods 4 years prior to registration date provided you I) still have the goods/item at hand at time of registration and ii) have an invoice addressed to the business.


For example, if hubby bought a van last year before being registered for VAT, provided he still has the invoice and the van is still being used in the business, you can go back and reclaim that VAT on your 1st VAT return.


The rules are the same for service but services limited to 6 months prior to registration, so if hubby paid an accountant I last 6 months before registering and VAT was charged, can get that back too.