Guidance On VAT And Early Termination Fees

Doshi Outsourcing30 Apr, 2021Finance

Do you charge your customers compensation to withdraw from agreements to supply goods or services? If yes you may have a question - Are charges to withdraw from agreements to receive goods or services vatable? Is there VAT on cancellation fees? The answer is yes. They very well are part of the supplies of goods or services for which you have a contract with your customer.