Value added Tax (VAT)

VAT is applicable on most purchases and a VAT Receipt/Invoice should be obtained for each transaction. This shows at what rate VAT has been charged and shows the amount of VAT included in the price of the goods/services being bought. 

A basic MasterCard transaction receipt only provides price information with no line item detail. A level 3 transaction receipt should always be sought with level 2 being the next best receipt detail.

Therefore, when ordering the goods/services, the Supplier should be asked to send the Cardholder either, a full line item detail VAT information within the transaction for each item bought, which is known as Level 3 transaction receipt or alternatively a VAT Invoice, which is know as Level 2 Transaction receipt.

Please note that if you do not identify recoverable vat correctly you may be incurring additional expenditure against your budget unnecessarily.

The MasterCard Voucher/VAT Receipt/Invoice should be retained with the Transaction Log as they may be required at a later date for reconciliation and/or Audit purposes.

 NOTE:     DETAILS OF ELIGIBLE SERVICES CAN BE VIEWED IN THE FINANCE MANUAL SECTION 8 OR ADVICE CAN BE SOUGHT FROM THE EXPENDITURE TEAM, EXT 3634 OR 3749 IN THE FINANCE DEPARTMENT.