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Unravelling travel

22 October 2008
Issue: 4181 / Categories: Forum & Feedback
VAT and travel expenses

My client is a VAT registered trader. Due to her position in her field she is occasionally asked to give talks and attend trade functions. On some occasions she is paid for this but on others she asks only for her travel expenses.

In the latter cases the expenses are often paid for by people who are not themselves VAT-registered. Should she be charging VAT over and above these expenses? Or do these amounts somehow fall outside the scope of VAT?

On the whole the travel expenses are limited to public transport costs where no input VAT is incurred. But where a mileage rate is paid for private motoring does this cause any additional complications?

The situation seems terribly straightforward but I suspect that the VAT position is far from that.

I should be grateful for readers' thoughts here.

Query 17 293 — Busby.

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