It is crucial that we have the correct VAT number for all contractors, where applicable, but understand this isn’t always available at the time the placement is added.

This guide details what happens with VAT within a Sonovate facility.

  • What happens if we don’t have a VAT number.
  • Where to see where VAT has been paid on the portal.
  • Where to add VAT numbers.
  • What happens with International Candidates

What happens if we don’t have a VAT number?

Since Sonovate advance at 100% (less fees) then if the VAT number is missing then the VAT amount of 20% will automatically be paid into the weekly margin.

If the VAT number is received at a later date then we will raise VAT only invoices which will need to be paid to the contractor directly by you. This is because the funds have already been paid to you in margin payments in previous weeks.

As we do not withhold any funds against an invoice, it is not possible to prevent any payments from being made.

It is in the best interest of all parties that VAT numbers are input correctly from when the placement is originally added.

Where to see where VAT has been paid on the portal

The best place to see what has been paid is on the Payments section of the portal.

In the example below, in the highlighted cells, two candidates, Nottingham Ltd and Cardiff Ltd have not supplied VAT numbers (this could of course be correct) but the effect is that the balance paid in margin includes the VAT amount. 

If the VAT number was later supplied then an amount of £159.13 would be owed by you to the candidate reducing the actual margin from £279.95 to £120.82 for that week.

Sonovate will create the adjusted VAT invoice and advise of the figure owed to the candidate. It will not show on the payments file even at a later date as the payment has already been included in margin as shown above.

Where to add VAT numbers

Ideally, supplier VAT numbers are added when a placement is loaded to the portal.

It is not possible to add a VAT number at a later date for a live placement so please email the details into customerservices@sonovate.com

What happens with international candidates

Candidates working outside of the UK will not be subject to UK VAT law. This section needs to be left empty on the placement. In addition, no VAT will be charged when invoicing as again will be seen on the payments download. 

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