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  5. The late payment of commercial debts (interest) Act.
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VAT on Late Payment Charges

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13 years 8 months ago #363 by logicool
VAT on Late Payment Charges was created by logicool
Can you please let me know if I should be charging VAT on either interest or compensation charges?

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13 years 8 months ago #364 by David J
Replied by David J on topic Re:VAT on Late Payment Charges
Hello

You do not charge VAT on either the interest or the compensation.

When doing your calculation though, you include VAT. So for a £1000.00 invoice, you will make a claim based on £1200.00.

More information can be found on this page about how to calculate late payment interest and compensation

Kind regards

David

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13 years 8 months ago #366 by logicool
Replied by logicool on topic Re:VAT on Late Payment Charges
Thank you for your help!

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  1. Discussions forums
  3. Pay on time supporter forums
  5. The late payment of commercial debts (interest) Act.
  7. VAT on Late Payment Charges
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