Company expenses and VAT

[freddyuk]

I have been told that when an employee obtains reimbursement for company expenses in the UK and does not produce a VAT receipt the employee becomes potentially liable for the amount of VAT. Is this actually the case?
Many thanks

[paultaylor@vatease.c]

In what way do you mean "liable for the amount of VAT"?

If an employee does not produce a valid receipt for expenses incurred then the employer will not be able to recover the VAT on its VAT return. It is up to the employer whether it would wish then to recover that VAT from the employee and its entitlement to do so would be a matter of commercial law not really a VAT issue.

Regards

Paul Taylor
http://www.vatease.co.uk/