Hi there,

Our company sold a bus to an external company who subsequently failed to register the vehicle in their name. In order for them to change ownership the arrear licence and penalties had to be paid which we then did as the vehicle was still in our name. We now need to invoice them for the licence and penalties. Do we view this as a service provided and raise VAT on this invoice or is it seen as an excempt supply?

Please advise,

Kind regards,