Hi there, I have a client who has had some cartoons accepted to go into a book in germany, he gets a royalty/commission for each cartoon that gets accepted and also on how many books the guy sells in germany, this money is then transfered into his bank account from germany. We are not talking huge sums of money about £200 ish, obviously this needs to go on the sales code in sage but what VAT code, (as client is VAT registered), is this a service as the images are provided via email etc.. any help would be apprecated. Thanks
I'm a learner here, so please don't take my reply as final.
I think that the Sage code for the royalties would be "4901 Royalties Received."
Given that what he is actually selling is the right to reproduce his cartoon, rather than the original (if there even is an original if the image is created on computer), yes, it is a service rather than a product.
I think the tax code would be T4, "Sales to Customers in EC."
Hoping that someone else will be able to confirm this, or correct it if I am wrong!
Hi thanks for the reply, I think on sage the sales to EC Services is T22, I think T4 is used for goods, I am not sure if the chap the other end is VAT registered or not will have to find out, if he is not VAT registered I think it should just go on as a normal T1 sale in sage. Any more help appreicated.
