My accountant doesn't seem to be able to give a clear answer on how I need to handle commission payments. So basically, I'm writing a wholesale platform where we will have Resellers, who can also have subresellers. Currently the plan is that Subresellers will topup their account by paying us directly, we add account credit to the subreseller. The subresellers pricing is set by their parent reseller. When the subreseller makes an order, the parent reseller will earn a "commission" which is the difference between the price the subreseller paid, and the parent resellers own cost price. What I am unclear on is how to properly pay this commission credit to our reseller. We are VAT registered, and will be charging VAT where applicable for invoices once prepaid funds are spent. Can we simply pay the commission directly to the reseller, or apply it as account credit and have the reseller take responsibility for any VAT required - or do we require an invoice from our reseller for their commission amount + VAT, and we then payout commission + VAT and claim the VAT back from HMRC based on the invoice they issue to use for "commission" ? I'm also considering another, option which may be easier to account (although also in it's own way more complex) where we could pass on responsibility for taking payment from subresellers to our direct reseller - and when a subreseller makes an order, we deduct from their balance the amount set by their parent, and also deduct the parent resellers cost price for the product from the parent resellers balance. We then completely disregard all transactions and invoices issues to subresellers and only account for those under our direct resellers (and provide options for our resellers to download their subresellers invoices for their own accounting). Any advice on how to best handle this in a clear, simple way and avoid too much accounting headache!