I have a new client who offers freelance sales services to companies (among other marketing services), she is basically receiving commission for new clients that she brings in to this specific company....my question for all you VAT experts out there is - is this a vatable service provision?
I really dont see why it wouldnt be, but she isnt charging VAT on these specific invoices (although the company is VAT registered), so it has thrown me a little.
Anyone know of any specific HMRC guidance in this area, that will help me out?
Commission received in return for selling something on behalf of someone else is a standard rated transaction and subject to VAT. Only financial or insurance commissions are exempt sales. If your client is VAT registered then I believe they should be declaring the Output VAT on their VAT return.
Try searching for 'VAT on commission received' and it should turn up HMRC guidance notes confirming the above.
