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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4203
Experience:  FCCA FCMA CGMA ACIS
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I run a VAT registered company selling new products on line

Customer Question

I run a VAT registered company selling new products on line and in person at shows.
I have been approached by a client who wishes that I sell some of his own items on a commission basis. This will entail me advertising them on our website.
We would be responsible for taking payment from the purchasing customer, providing them with a receipt, deducting the commission and passing the remainder to the client.
What would our VAT liability be in this instance?
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.
You would be responsible for paying the VAT on the sales. the settlement with your client should be net on this VAT. If the client is registered for VAT then he will have to issue an invoice once he is cognisant of the sums involved and you would pass it through your books as input tax which you would reclaim.
I do hope I have shown you the way forward.
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.
Thank you for your support.