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Thank you for your answer, but just to clarify some other parts of my question:
Would the VAT be applicable at point of sale (individual or company) or at the point of redemption?
It appears that if a School was to purchase training with their Government funding, in this instance it would be exempt; but if a teacher purchased the training, it is standard rated. Could we administer both scenarios under a typical company VAT registration?
Finally, as we are in effect making a commission from the sales of the tokens for training courses; what VAT be applicable on our purchase price? Our sales price? Or as I have seen on some HMRC information, only on our commission element?
VAT is payable Roy, if appropriate, at the point of token sale.
There is no problem in two types of training rating being operated under the same VAT umbrella. However careful invoicing and book keeping will be required. For example, I run the accounts of two companies who make varying supplies. I have ledger headings for 'fees stanndard rated' and 'fees zero rated' for example.
I had not been aware from your initial question that we were dealing with a commission situation. Normally your VAT would only apply to your commission element only. You could, in theory, operate the other fees as a sort of third party banker. I did this once for a holding company. On a VAT inspection I carefully expained the accounting to the Inspector who said he understood. He then proceeded to add up all the moneys coming in to the bank account. I asked him what he thought he was doing and he assured me that this would give him the amount of output tax created. There then followed a bill for 2K underpaid VAT which was the subject of an immediate appeal and rapidly cancelled. Accounting for the token sales will involve a lot of book keeping and for each sale or their aggregation then an invoice will have to be raised to reduce the VAT on those sales to zero.
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