VAT on disbursements
Within your practice, many solicitors refer to a variety of costs related to providing your service as disbursement, such as travelling expenses. But these costs might not qualify as disbursements for VAT purposes.
You must charge your client VAT when billing if an item is not a disbursement for VAT purposes.
This practice note aims to clarify this issue and help you identify what is or is not a disbursement for VAT purposes.
The latest version has been extensively updated, providing case law information and detailed practical examples.
Current version
VAT on disbursements practice note - 10 March 2011