VAT

[Ninaaa]

Hello.

I have a question regarding VAT. I am going to invoice a customer and have purchased materials for the customer. I will invoice the customer for labor costs including VAT, but should I also invoice the materials I have purchased with VAT or without VAT?

 

[SågspånPappspikEternit]

Is it a private customer or is the customer another construction company for which you are performing work?

 

[nino]

Including VAT

 

[Kaboff]

Including VAT to private customers,
If the materials cost 25kr with VAT and your labor 250kr with VAT, you can write it like this:
Labor 200kr
Materials 20kr
VAT 55kr
Total 275kr

 

[Daniel 109]

You invoice with VAT, but deduct the VAT on your purchase if it was with VAT.

 

[cpalm]

With VAT to private customer

With VAT also to business customer, except in certain exceptional cases (e.g. EU-VAT).
If the buyer then has the right to deduct the VAT, it is a matter between the buyer and the tax agency that the seller does not need to worry about.

 

[Ninaaa]

Is it a private customer or is the customer another construction company you are doing work for?

Thanks for the quick answers!!!
For a private customer. I mean like this, imagine I bought materials for 1250kr including VAT, say paint.

Should I then invoice the customer 1000kr + VAT or just 1250kr without VAT?

 

[SågspånPappspikEternit]

With VAT also to corporate customers, except in certain exceptional cases (e.g. EU VAT). Whether the buyer then has the right to deduct the VAT is a matter between the buyer and the tax authority that the seller does not need to worry about.

No. Reverse charge for construction services:
https://skatteverket.se/foretag/mom...byggsektorn.4.47eb30f51122b1aaad28000545.html

 

[Ninaaa]

Thank you for all your answers!!

 

[SågspånPappspikEternit]

Thanks for the quick responses!!!
To a private customer. I mean like this: imagine I bought materials for 1250kr including VAT, say paint.

Should I then invoice the customer 1000kr + VAT or just 1250kr without VAT?

You write on the invoice something like
Paint 1,000 kr
VAT 25% 250 kr
Total to pay 1,250 kr

 

[cpalm]

Should I then invoice the customer 1000kr + VAT or just 1250kr without VAT?

1000 kr + VAT if you conduct VAT-liable business and are VAT registered.
Then in the VAT declaration, it will be 250 kr input and 250 kr output VAT that cancel each other out.

Otherwise, 1250 without VAT (e.g., if you take advantage of voluntary VAT registration for turnover under 30/80 000 kr).

 

[nino]

Thanks for the quick replies!!!
To a private customer. I mean like this, imagine I bought materials for 1250kr including VAT, let's say paint.

Should I then invoice the customer 1000kr + VAT or just 1250kr without VAT?

1000 plus VAT
Then it depends on how your invoicing program looks, sometimes you can choose to invoice including VAT to certain customers, then you write the amount including VAT on the invoice but the program calculates the VAT

One should have a handle on this kind of thing before starting a business....

 

[Ninaaa]

1000 plus VAT
Then it depends on what your invoicing software looks like, sometimes you can choose to invoice including VAT to certain customers, then you enter the amount including VAT on the invoice but the program calculates the VAT

This is something one should be aware of before starting a business....

Thanks for the answer.

 

[Kilrain]

Invoice the customer for material cost excluding VAT, and then including VAT.

Example: As a business owner, you buy X items for 80 SEK plus VAT, i.e., 100 SEK.

When you then invoice the customer, you also charge 80 SEK plus VAT, i.e., 100 SEK.

You can also add a markup for materials that you determine yourself, within some reasonable limits.

But you cannot ask the customer to pay VAT on your VAT when invoicing materials. Since you, as a business owner, offset your VAT, it would otherwise be completely absurd.

 

[cpalm]

Well. Reverse charge for construction services:
[link]

If it's a construction service and the buyer is a construction company, yes (perhaps a bit unlikely).