Foreign Earnings

Julie2011

Afternoon All,

I have a client who has recently set up a Ltd Co, he is buying products from America and reselling the items around Europe although never seeing the actual items himself as the American Co ship direct to his clients.

Rather than purchase invoices being raised for the component parts, and sales invoices raised for items sold, the American company are paying a commission on sales.

Does this sound ok? He wants to register for VAT and Im a little confused as to how this would happen if he is receiving the commission from the American company and not actually issuing sales invoices. Does this sound like a service company arrangement and fall into the IR35 rules?

Bit stuck on what I should be advising my cient, any advice greatly appreciated.

Thanks Julie