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hi Im Debus a doughnut one of the writers for the practical vet loose-leaf service and a regular speaker FSP business seminars such as the vet masterclass series seminars one of the many questions the users of the accounting and tax club battle with is how to deal with fat on intercompany transactions is their vet at all and if so who should pay it over and who should claim it lets take a look at an example to explain vet on intercompany transactions company air is a holding company and it has lets say three subsidies company b c and d now let us assume all four of these companies have their own vat number each one is registered individually for vat purposes now company a holds the account at the stationers and so at the end of the month let us assume a tax invoice that arrives in the name of company a for 10,000 rounds okay the vet thousand four hundred total 11,400 read the tax invoice is in the name of company a so company a claims the input text of a thousand four hundred r and
