VAT implications for online marketplace

StupidLikeAFox

Lets say I have an online marketplace website which allows individual retailers to put their their products online for sale. When someone buys off the website, I take the payment online and notify the retailer to send the product to the customer. I never see the product - I take a commission from the payment I have taken and forward the balance to the retailer.

Now, the question is, how is this handled from a VAT perspective? Am I technically selling the product meaning I should charge 23% on all the items for sale?

Or am I merely providing a service to the retailer, meaning I charge 13.5% VAT on the commission I take. In this case, the retailer is actually selling the product to the customer meaning they should worry about the 23% VAT on the product in their own accounts?

Im not sure if I can think of a comparable solution in real life. Anybody have an opinion on or have experienced of a scenario like this?

Alan Shore

I'd imagine the applicable rate is 23% on commission.

I wonder if this gives any guidance

http://www.pearse-trust.ie/blog/bid/73229/VAT-Agents-Disclosed-And-Undisclosed

exaisle

StupidLikeAFox wrote: »

<SNIP>

Or am I merely providing a service to the retailer, meaning I charge 13.5% VAT on the commission I take. In this case, the retailer is actually selling the product to the customer meaning they should worry about the 23% VAT on the product in their own accounts?

Im not sure if I can think of a comparable solution in real life. Anybody have an opinion on or have experienced of a scenario like this?

I'm just wondering on what basis you would charge 13.5% VAT on commission?

It may sound obvious, but your best bet here is to phone the Revenue Commissioners VAT Branch and ask them (on the basis that you're thinking of starting up a new business...)