One of my clients is a company in Switzerland and pays commissions to an UK company for sales and services for an UK customer. The Swiss company is registered for VAT in UK. Are these commissions liable to UK-VAT ?
Hi Heidi
Are the services/sales/money come from Switzerland and are they registered for VAT? Or from the Swiss company in the UK? Also is your UK client VAT registered?
Sorry a few questions instead of answers.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Not really got enough to go on here. My understanding is - if the supply was coming from Switzerland then I understand its outside the scope of VAT as non EU, ALTHOUGH I have read something about Switzerland using EU standards so this element needs checking out. But if supply is from UK, albeit via a Swiss company with a UK base, with a UK VAT number then my understanding is that they are correct to add to VAT. Our resident expert is Les - he might be along in the next day or so to give you a better idea, but failing that I would check out the VAT number being given, via VEIS, and suggest a quick call to the VAT helpline.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Switzerland is outside the scoop of VAT. I have a client who invoices a Swiss company 250k a year, to provide services all over the world. The invoices come from a UK company, which has the option to be VAT registered or not because the non Swiss turnover is under the VAT threshold. (Clients record keeping is always late, so vat registration is a complication she could not cope with!)
Having re-read you question, You are asking if they should pay VAT on the commission. This should be decided by the receiver., not payer as whether they are liable or not will be their liability to make sure is applied correctly.
-- Edited by YLB-HO on Sunday 23rd of August 2015 01:53:00 PM
You are asking if they should pay VAT on the commission. This should be decided by the receiver., not payer as whether they are liable or not will be their liability to make sure is applied correctly.
-- Edited by YLB-HO on Sunday 23rd of August 2015 01:53:00 PM
Interestingly Ive just had a discussion about adding VAT when a German company refused to give their VAT number. Their response was - we dont have to pay VAT so we wont! Mine - if we add it you will pay it! Simplest way round it is to just give me your VAT number! End result after many days of to-ing and fro-ing - we refused to work with them (although there were some other things that also caused concern which affected the ultimate decision)
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
