Loan repayments and interest. Are they Zero VAT or not applicable?
Question asked by cristina serra ruiz 10 years ago
Hi
Is a loan repayment and loan interest "0 VAT" or "don't include in the VAT return"?
Thank you! Cristina
Question asked by cristina serra ruiz 10 years ago
Hi
Is a loan repayment and loan interest "0 VAT" or "don't include in the VAT return"?
Thank you! Cristina
Hi Cristina - the actual loan repayment is outside the scope of VAT, so it doesn't appear on the VAT return.
The interest is Exempt from VAT and I have always included this in box 7 of the return (assuming you are paying rather than receiving interest) by using 0%, as box 7 should include all purchases & expenses.