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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13997
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I have come accross company that i have started using and

Resolved Question:

Hi i have come accross company that i have started using and paying a monthly fee to that is based in the US. The company charges me a monthly fee and has a co op of goods that i can choose items from online for which then that company will buy the products from there wholesaler in the us list the items on there own Amazon accounts in the us deliver the items to the customers in the us and deal with everything needed for me on the customer side of things. When sales are made i get paid a commision paid to me into my back office online for which i can take out then as profit for me in the UK. My question is do the sales figures generated by this sort of business need to be noted down as my turnover and liable for uk VAT if i go over the 82K a year sale threshold or is the company in the us the ones liable for paying the VAT over there. I know i would need to pay tax on my business profits made it is just the VAT side of things that is confusing me as none of the goods enter the UK and none of the customers are in the uk as the 3rd party company deals with all that?
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.
Hi Thanks for your question - I am Sam and I am one of the UK tax experts here on Just Answer Based on what you have advised then you just need to treat the commision paid (less the monthly fee) as your source of income for tax and VAT purposes as in essence you are "agent" Thanks Sam
Customer: replied 1 year ago.
Hi can you please confirm then i am not liable to pay the VAT just profits made as i am an agent?
Expert:  Sam replied 1 year ago.
Thanks for your further question That's right as long as your income from commission does not exceed more than the VAT threshold (£82,000) then you have no requirements to worry about registering for VAT Thanks Sam
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