VAT on Commission

Nelly71

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.

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.

Nelly71

Thanks barney - I forgot about invoicing for the commission!