VAT issue

[dfrbrowne]

Hi,

Who can help on this one. As a vat registered designer, I charge VAT on my time for Design and artwork. I understand this to be correct.

The issue I have is this, If I design a brochure for £100 I will charge VAT on my time.

Say I then buy the print on behalf of my client and the printer charge me £180 at 0 VAT rate, I add a £20 mark-up and charge onto my client £200 for the print and £100 for the artwork Total before VAT £300.

Do I then charge VAT on the total amount?

Anyone advise?

Thanks

 

[Stationery Direct]

You must charge vat on the design work but if the product being printed is vat exempt (as 99% of brochures are) then you shouldn't be charging vat on this.

Break down the invoice so your client realises that the vat is only being charged on the design work.

Thought this link may be of use to you...

http://www.stationery-direct.co.uk/blog/vat-on-printed-products/

Hope that helps.

 

[dfrbrowne]

Thanks for that,

It's all a bit confusing on this, one piece of advice I had was that as the print was VAT excempt, the fact that my design and artwork was on the same invoice that should be vat exempt as well?

Is it right that no matter what type of job it is the design and artwork is always Vatable?

Thanks

 

[Stationery Direct]

If you are unsure contact HMRC and ask, as I understand it and as we operate, you should always charge vat on the design work whatever the situation with regards to the printed product.

 

[Grafiker]

No that is incorrect. If the preparatory work (design, artwork etc) results in a vat exempt item (a printed brochure for example) and is invoiced at the same time, then the design/artwork and the printing costs are both zero rated.

see: VBOOKS4300 - Books: Processes leading to the production of printed matter: Preparatory work