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VAT on Commission

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  • 06-10-2014 1:00pm
    #1
    Registered Users Posts: 33


    Hi, just wondering about VAT and commission. I need to pay commission on a job that was passed to me. I have already paid the full VAT bill on the earnings from the job, so I assume that the person i'm paying the commission to, does not have to pay any VAT. Did I do this the right way in paying all of the VAT for the job? Thanks in advance.


Comments

  • Registered Users Posts: 4,683 ✭✭✭barneystinson


    The VAT you're due to pay is based on the amount you charge for the service you provide - that's your responsibility.

    The person who is charging you a commission has their own responsibility - if they are due to account for VAT then they should charge you VAT on the amount of commission (which you would be entitled to a deduction for, like any other allowable input).

    At the end of the day it's not your concern what they're doing, VAT-wise, so long as you get a VAT invoice if they are charging you VAT.


  • Registered Users Posts: 33 Nelly71


    Thanks barney - I forgot about invoicing for the commission!


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