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Where Taxpayers and Advisers Meet

VAT disbursements on client invitation postage

Lavender2306
Posts:21
Joined:Mon Dec 12, 2016 11:03 pm
Re: VAT disbursements on client invitation postage

Postby Lavender2306 » Thu Apr 27, 2017 12:23 pm

hope you don't mind me asking, but by any chance do you work as an accountant or tax advisor? I just want to be able to go back to my accountant and say who I got the information from.

Thanks so much! :)
Hi Ajay,
I am a VAT specialist with accounting background.

With regards to your accountant disagreeing with you on this subject, I would look at this positively. Of course, ideally you want to have an accountant who also can deal with VAT issues
in depth. However, unfortunately, just accounting qualification and experience does not guarantee sufficient in depth knowledge in indirect taxation.
That is not criticism to your accountant, it is just how things are with obtaining accounting and tax qualifications.

And if your accountant has an independent views then it is good for you. I would trust more someone who openly disagrees with me rather than someone who does as I would tell them
without expressing their own opinion ;-)

Apologies for a little lecture ;-)

Lavender2306
Posts:21
Joined:Mon Dec 12, 2016 11:03 pm

Re: VAT disbursements on client invitation postage

Postby Lavender2306 » Thu Apr 27, 2017 12:33 pm

your client was responsible for paying the third party
So do you go to the Post Office and they hand over the postage stamps to you? How is your client responsible for paying the Post Office for the stamps? If you walked out of the Post Office without paying would the Post Office's only remedy be to pursue your client for non-payment or might they consider that you should have paid?

If you pay the Post Office then does your client first put you in funds for this or are you bearing the risk of your client not paying you?
There is an agency relationship between Ajay and his clients. Ajay is acting on behalf of his clients with their knowledge and approval of his actions.
In such scenario, a client does not need to advance funds to the agent. This is why we are discussing disbursements. It is when an agency spends his own money and then recovers the money spent from his client.


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