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Typing centres: keeping government fees outside VAT
Why government fees must not be taxed on your invoice, and how to bill them correctly.
· 1 min read
A typing centre invoice usually has two parts: your service charge and the government fee you pay on the customer's behalf.
Your service charge
This is your income. Standard-rated VAT applies.
The government fee
Fees collected for government bodies are generally outside the scope of VAT when you pay them as the customer's agent. Put them on the invoice as a separate, out-of-scope line so no VAT is charged on them and they stay out of your VAT return. Ask your tax adviser if a fee is unusual.
Track the application
Keep the portal, application number, Emirates ID and visa expiry on the order, and move it from received to submitted, approved and completed.
Typing centre software with government fees kept apart
Bill your service charge with VAT and the government fee outside VAT on the same invoice. Track every application from received to submitted...