Passing contractor's VAT charge to client?

[crystalzander]

I provide recruitment services for clients and I have one contractor working for company XYZ. The contractor invoices us and we invoice the client. The client and the contractor are VAT registered, we are not. When the contractor charges us VAT can we pass this VAT charge onto the client?

For example. The contractor daily rate is 100. They charge us 100 + 20.

Our margin is 10 per day. Can we invoice our client 110 for contractor fee and our fee + 20 for contractor's VAT?



Thanks in advance.