We recently held a Charity Auction. Some of the winning bidders were invoiced for their payment at zero VAT while others paid cash at the auction. I am okay with most of the transactions required I just want to be sure to keep the VAT correct and do not lose money in VAT Payments on charity ins and outs.
So two questions -
(1) Was I correct in invoicing for payment at zero VAT ? and
(2) Should I receive the cash payments in (against a ‘donation’ customer/sales invoice) at zero VAT ? - Many Thanks.
Hi @Inform
Unfortunately, I’m not qualified to say whether or not it would be correct to charge these at zero-rated VAT, but I didn’t want your question to go unanswered.
Your best bet would be to ask an accountant. If you don’t have one, you could try one of our partner websites, FindAnAccountant.co.uk, or by using this button on your QuickFile dashboard:
You may also want to try posting the question to a forum such as the UK Business Forum where someone may be able to help you further than what I can.