We are a VAT registered business who want to sell tickets on behalf of non VAT registered business. (A one off event) We would be paid a commission on each sale, I know that would be VATable but can we sell the tickets at the same price as the non VAT business as we aren't buying the tickets as such, just taking payment for them?
My understanding is you need to include VAT in your price, but it's a while since I trawled the regs for this one and sorry not got time to do it now, so I would suggest you speak to your Accountant.
-- Edited by Cheshire on Sunday 18th of October 2015 09:36:54 AM
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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
Hi Tony, its not one I have come across before, so I will just give you some food for thought.
Are you buying the tickets, or the client?
Will you actually see the tickets, or are they simply sent out from your clients? Or will you post?
Where will the cash from the ticket buyer be paid to?
If your client is buying, and you simply sell them (whether you see them or not), the cost would never hit your books, you would only invoice for your commission (inc VAT) and then pay over the difference of the takings.
If you are buying the tickets, it would make sense to me that, that if invoice was in the name of your client, it would be a disbursement, you wouldn't claim any VAT on the buy. You would just recharge the tickets without VAT, and then charge your commission on top.
If you don't buy or take the cash, then there's just a commission invoice, but I suspect that's not the case.
Just another thought... do the tickets have VAT on them? As you could buy and sell for the same price. So the VAT you claim = the VAT you charge... on the tickets
So you buy tickets at £100+£20 VAT, and you have to charge commission of £10 which will have £2 VAT
Your invoice to your client is:
Ticket recharge £100
Commission £10
VAT £12
You would claim the £20 on the ticket purchase, and it would be cancelled out by sales VAT when you recharge them on. So the net affect is that you pay £2 on your commission
My assumption was based on the agents acting as agents as principal which is common in such scenarios and normally happens if their client wants to remain anonymous. Normally then treated as both receiving and making the supply of services for VAT, but in this case the receiving bit is more 'awkward' as the supplier is not VAT registered. But very happy to be corrected.
__________________
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
