Vat querie

Tommy Max · 2010-10-28 07:47:34

We have our own sales reps on our payroll. We contract them out to our clients for fixed periods of time for a fixed fee per month which we invoice them for plus vat. Now as with their performance in achieving a certain sales level, our client will inform us that our rep is entitled to a bonus of X amount. So we pay that…

28-10-2010 07:47AM

#1

Tommy Max

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Join Date: July 2010

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We have our own sales reps on our payroll. We contract them out to our clients for fixed periods of time for a fixed fee per month which we invoice them for plus vat. Now as with their performance in achieving a certain sales level, our client will inform us that our rep is entitled to a bonus of X amount. So we pay that with their monthly salary through our payroll as normal. Then we send our client a second invoice which covers the bonus amount say €2,000 for example plus the employer PRSI incurred on the bonus amount eg €215 giving a total invoice to our client of €2,215.

My question is, are we required to charge VAT on this also? It would appear to be simply a reimbursement to us for the cost incurred and no profit will be arising from it.

Also what items are not vat recoverable. I know petrol, hotels, and leasing costs. Is there an extensive list anywhere?

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