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Post Info TOPIC: Should VAT be accounted for on commission received from US company
KBS


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Should VAT be accounted for on commission received from US company
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As the title says really! I'm getting conflicting information. Tried calling HMRC but they are very busy due to the strike!

 

Thanks in advance!!



-- Edited by KBS on Thursday 10th of July 2014 11:25:52 AM

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Wella


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Hi Katie

The reply is a little more complicated than the question.

Several things need to be considered first.

What is the commission for? As it is commission it is probably the supply of some sort of service

If it involves land or property then UK vat rules will probably apply, Likewise if it is an event that takes place in the UK.

Can you give a bit more information

Bill



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KBS


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Hi Bill,

The commission is for some sort of web design. His last bookkeeper told him no VAT should be charged but I just wanted to make sure she was correct as their bookkeeping wasn't too clever!

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Wella


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It sounds like it is a supply of services where the customer belongs (USA, assuming they are not operating from the UK?)

In this case the supply is outside the scope of VAT, and is not reported on VAT return. e.g. It is not zero rated or exempt

HTH

Bill



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KBS


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Thank you Bill. Thats what I expected and hoped!!

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