Recharging costs to a customer

There are many incidental costs the University might incur that must be included in VAT calculations when it invoices customers. These include items like travelling expenses postage and delivery costs.

Examples of costs where VAT will be added are:-

• an airline ticket that you buy to visit a customer, if you recharge the cost to your client you must charge VAT because the flight was for you, not for the client
• postage costs you incur when you send letters to your customers, these are normal business costs and you must add VAT if you recharge them
• a bank transfer fee paid when transferring money from your business account to a client’s account - even though the bank’s fee is exempt from VAT, if you recharge the fee you must charge VAT, because it was for a service provided to the University and not to the customer