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VAT on Late Payment Charges

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logicool
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13 years 7 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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David J
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13 years 7 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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logicool
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13 years 7 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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VAT on Late Payment Charges