If a cost is classified a disbursement, and e.g., say the disbursement was with respect to an advice obtained obo the client. The advisor charged VAT on his services. Should the disbursement be gross of the advisory invoice, i.e. inclusive of VAT, or should it be net of VAT? I understand that no further VAT should be charged on disbursements.
If it should be net, would the supplier be able to claim input VAT on the invoice received from the advisor that was paid obo the client?
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Disbursement
E.g. Party A charged party B and party B charges party C. In this case, when party B issued an invoice for the disbursements to party C, should party B invoice for the disbursements gross or net of the invoice received by party A? Moreover, is the input tax allowed party B or by party C, since the expense is obo party C?
Wow what a question!
Where is the manu al are you looking to find the solution?
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