Betty Bookkeeper explains how to invoice when a VAT vendor passes on charges from another entity – March 2015

Hi Betty 

Please can you advise on the below?

Scenario 1:

  • The company is a VAT vendor.
  • The company receives an invoice from a non-VAT vendor for R300. This is work done for another entity. We have to invoice the entity to recover the expense.

How do we invoice? R300 + VAT?

Scenario 2:

  • We paid cellphone expenses of R570 (incl. VAT) for another company.
  • We claimed the VAT.
  • We have to recover the expense.

How do we invoice? R500 + VAT?


  • The company is a VAT vendor. Is there any scenario in which we may not invoice for VAT?
  • May we claim VAT for kilometers traveled on behalf of another entity?

I would really appreciate your input.

Thanks and regards,


Hi David

If a VAT-registered entity is passing on an exact charge from another entity – and there is no separate supply of goods and services – then they do not have to charge VAT on this amount, as it’s merely a recovery of expenditure.

Hope that helps!


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