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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4097
Experience:  FCCA FCMA CGMA ACIS
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I run an online ticketing company. We do not buy tickets.

Customer Question

I run an online ticketing company. We do not buy tickets. We allow event holders to sell tickets using our online platform. We take payments on their behalf. We then transfer these payments periodically to the event holder. From what I understand, we are not liable to pay VAT on the value of tickets, as we do not buy these tickets from event holders. Is this correct? Also how do I produce an invoice representing the payments made to the event holder? The confusion lies as I am not invoicing the event holder for payment, but merely transferring the balance owed. The event holder would not invoice me either as I am not selling the goods or services to them.
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. In my opinion your company is acting as a banker and such activities are outside the scope of VAT. Thus no invoices are required either way just some written evidence of moneys in and out in the event of an investigation by HMRC. This is a belt and braces precaution to cover the company's position. If you did operate VAT the outputs and the inputs would be identical and accounting for VAT an exercise in financial futility. I do hope that I have been able to help you with your question.