Hi I've got a query about ticket sales - we act as agents for a number of companies and sell tickets on their behalf. We charge the exact same amount as we purchase them for, plus add a 10% comission. The customer is aware of this and knows that they are getting tickets from our supplier. As such are we allowed to class the actual tickets as a disbursement so we dont pay tax on it (and cant claim tax on it) for example (normal way without disbursement) Tickets Net: £85.10 Vat:: £14.90 We pay: £100 Charge to customer Tickets + 10% Service Charge (inc vat): Net: £93.62 Vat: £16.90 They pay: £110 We can claim back £14.90 input tax but pay £16.90 (so we 'lose' £2 per transaction on a £10 comission- not ideal!) However if we could treat the ticket as a disbursement, then we would claim no input vat back but pay: £1.75 (vat on £10) A lot of our suppliers are also not vat registered, so this way would be preferential (otherwise we would pay £16.90 on a £10 comission!!!) Does that sound correct???