Receiving Commission & VAT

[falconinternetlimited]

Hi,

We are voluntarily VAT registered and I wanted to ask - if we receive comission for a sale of a 3rd party item that we haven't sold (e.g. commission for sales through an affiliate scheme), and the commission does not include VAT because the affiliate is not VAT registered, do we need to deduct 17.5% from the commission income and declate it to the IR anyway?

Thanks a lot,

Rupert

 

[Alpha]

Rupert

generally the answer is no.

If you got your commision from say google ireland (bad example I know as they are vat registered) you would not have to pay vat. They would simply invoice you for the commission with no vat on the invoice and just like buying something from a store you would not pay or claim any vat.:smile:

 

[falconinternetlimited]

Alpha,

Great! Thanks a lot.

Rupert

 

[UKSBD]

Hi,

We are voluntarily VAT registered and I wanted to ask - if we receive comission for a sale of a 3rd party item that we haven't sold (e.g. commission for sales through an affiliate scheme), and the commission does not include VAT because the affiliate is not VAT registered, do we need to deduct 17.5% from the commission income and declate it to the IR anyway?

Thanks a lot,

Rupert

Sorry can you clear this up for me as I am lost.

Are you saying, a non VAT registered affiliate made the sale, but you get the
commission and then pay the affiliate?

If so, I would say you would have to charge VAT to the merchant, but the
affiliate would not charge you Vat of their commision of the commission.

If it is the other way around, and the affiliate gets the commission direct from
the merchant, you would then have to charge the affiliate VAT if he pays
you a commission.