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bigduckontax
bigduckontax, Accountant
Category: Tax
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Are commissions earned raising treated

Customer Question

Are commissions earned for fund raising treated for VAT
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.
Please advise who is receiving the commissions? You will see from this extract from the Institute of Fund Raising an important isitinction:
'Events run by a non‐charity owned commercial company are not covered by the one‐off events exemption, as they are not regarded as being a charity event, regardless of their aim. Examples of these events include the London Marathon and the Great North Run.'
Customer: replied 2 years ago.

The funds are being raised for third party investments in a UK unlisted PLC

Expert:  bigduckontax replied 2 years ago.
Such an activity is a standard rated supply and VAT must be charged. If the organisation receiving the commissions's turnover in a year exceeds 82K then it must register for VAT. Organisations below this level are sometimes registered too. However if turnover is lower than 82K then registration and accounting for VAT is not necessary.

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