Interior Designer/Consultant - can vat be claimed on supplies

[sat1979]

I am an interior designer/consultant and run my business through a limited company (have just commenced trading). I have registered for VAT as I expect my income to be over the threshold. I am managing the decoration of a house my client has just purchased (this is not a new house). I charge my client on an hourly basis for the time I spend and add vat to this. My client has deposited funds into my account for the purchase of fixtures and fittings, labour costs etc. For example, purchase of a kitchen. The supplier makes the invoice out to my company, but is delivered to my clients and installed there and the company pays for the kitchen from the funds deposited in my account by the client. My question is, can my company claim back the vat charged on these invoices? thanks

[Paul Taylor]

You must decide on who the goods are supplied to.

If the goods are supplied to your company then our company can recover the VAT. However, you will then be required to account for VAT on the onward sale to your Client.

If the goods are supplied direct to your Client then you cannot recover the VAT.

Regards

Paul Taylor
Senior VAT Consultant
Dains.com

[aaroncody]

I accept with paul statement. This is a common fact on VAT.