Commission invoices & VAT

Aaron C Rescue
Aaron C Rescue Registered Posts: 76 💫 🐯 💫
I wonder if someone could advise me on a query?

My mate with the web site business has an income stream which is based on commission charges for sales generated VIA his website. Should VAT be charged on those invoices?


  • T.C.
    T.C. Registered, Tutor Posts: 1,448
    He must make sure that he is registered for VAT before he charges it!
  • JodieR
    JodieR Registered Posts: 1,002
    I've got a client who's business derives its income solely from commission from websites and most (if not all) of his 'customers' operate a self-billing system. To start with he wasn't VAT registered but because much of his advertising was done through google adwords who are irish the cost of advertising had to be added to his turnover figure and he soon reached the VAT registration limit and had to register for VAT. He notifed his customers and they then accounted for VAT on the invoices they raised on his behalf. I remember it being a bit of a hassle at the time but after a few months it all ran smoothly.
  • Aaron C Rescue
    Aaron C Rescue Registered Posts: 76 💫 🐯 💫
    Turns out the VAT issue was caused by a Web design error and the autocalculator pointing at the wrong place.
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