Commissions from a VAT registered company?

[Just_a_bloke]

I'm VAT registered.

I'm due some commission payments from another VAT registered business for work I have put their way. They normally make their payments to non-VAT registered people, so have not encountered this issue before.

I've asked them how they log the commission payments in their accounts (zero rated, or inc 20% vat etc.), but got nowhere.

The last thing I want to do is give away 20% so would like to know how I should enter the payments in our accounts please?

Any help would be appreciated. Thanks in advance.

 

[Clearaccy]

Some commission is VATable some isn't depending on the service.

 

[lesvatadvice]

Does the contract state that commission is VAT inclusive or VAT exclusive?

 

[Just_a_bloke]

Does the contract state that commission is VAT inclusive or VAT exclusive?

No written contract. All done on good will/word of mouth basis.

 

[Just_a_bloke]

Some commission is VATable some isn't depending on the service.

I've asked them again to try and clarify the VAT status, but they've not been helpful in the past

 

[STDFR33]

What service do you provide?

 

[lesvatadvice]

B2B commissions ought to be exclusive of VAT, with a simple written agreement to confirm.

 

[Just_a_bloke]

What service do you provide?

I sell specialist automotive products. Products I do not supply, I pass on to another specialist supplier, then if they get a sale, I get a commission

 

[Just_a_bloke]

B2B commissions ought to be exclusive of VAT, with a simple written agreement to confirm.

I've been assured the financial director will sort it... but I'll have to wait and see.

 

[Darren C]

I sell specialist automotive products. Products I do not supply, I pass on to another specialist supplier, then if they get a sale, I get a commission

This is similar to affiliate marketing then? I am not an expert on vat but with normal affiliate commissions it is standard practice to invoice 'plus vat' if you are registered.

 

[Deleted member 59730]

B2B commissions ought to be exclusive of VAT, with a simple written agreement to confirm.

B2B commissions depend on whether the person receiving the commission is registered or not.