VAT Question
06 March 2017, 08:34 PM
#1
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VAT Question
OK so I have an overseas contact (Australia) who wants to buy something from UK. I know where they can get the product from and tell my contact to pay the company who are VAT registered directly and they will send goods VAT free to Oz.
The UK company are happy to pay me a commission for getting them the business.
My question is should the UK supplier charge VAT on the commission or not bearing in mind no VAT is chargable on the goods supplied. I am no longer VAT registered so could not claim it back if I was charged.
Thank you, David
The UK company are happy to pay me a commission for getting them the business.
My question is should the UK supplier charge VAT on the commission or not bearing in mind no VAT is chargable on the goods supplied. I am no longer VAT registered so could not claim it back if I was charged.
Thank you, David
07 March 2017, 05:48 AM
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Hi,
All commissions are normally paid on the net prices - excluding all taxes.
The company does not make money on the VAT - they are simply unpaid tax collectors for the government.
Cheers
Steve
All commissions are normally paid on the net prices - excluding all taxes.
The company does not make money on the VAT - they are simply unpaid tax collectors for the government.
Cheers
Steve
07 March 2017, 11:07 AM
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Thanks Steve but that's not quite the point. Agree the commission is based on net prices but I am asking whether VAT is added to the commission amount itself?
David
07 March 2017, 12:09 PM
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I think you are looking at this the wrong way.
You as an agent (effectively) need to invoice the UK Company for your services.
As you are not VAT registered you are unable to add VAT to your invoice.
If you are being paid as a % of sales invoice, simply invoice for that.
You as an agent (effectively) need to invoice the UK Company for your services.
As you are not VAT registered you are unable to add VAT to your invoice.
If you are being paid as a % of sales invoice, simply invoice for that.
07 March 2017, 03:13 PM
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I think you are looking at this the wrong way.
You as an agent (effectively) need to invoice the UK Company for your services.
As you are not VAT registered you are unable to add VAT to your invoice.
If you are being paid as a % of sales invoice, simply invoice for that.
You as an agent (effectively) need to invoice the UK Company for your services.
As you are not VAT registered you are unable to add VAT to your invoice.
If you are being paid as a % of sales invoice, simply invoice for that.
Thanks. I agree with above. In fact I did exactly that and received amount on my invoice. However supplier told me that next time they would have to add VAT but I think they are wrong.
I phoned VAT office earlier today and asked for their opinion but to my surprise the guy I spoke to said he would have to ask his colleagues and so I am waiting a call back from them.
Nice guy at VAT office and I asked him about Brexit and the VAT situation as on the face of it all exported goods into EU would be zero rated when we left which would have major financial repercussions which I have never seen mentioned in the great debate. VAT guy said they were totally in the dark
David
