VAT on Commission

Diddy Mau
Diddy Mau Registered Posts: 238 ? ? ?
Hello All,

Hope it's ok, for me to post in a MIP Forum. But I hope someone will know the answer.

An invoice comes in showing amount of commission earned for the company. if no VAT is shown on invoice, am I right in Saying the company doesnt need to include the commission on its VAT Return
If invoice does not show VAT amount, then Commission is exempt under Finance, Group 5 of Sch 9 to VATA 1994.
am I right on this, found legislation on Accounting Web

Many thanks to anyone who can help


  • Monsoon
    Monsoon FMAAT, AAT Licensed Accountant Posts: 4,071 ? ? ?
    What sort of commission? General commissions on sales are VATable at the standard rate.

    Schedule 9 is here.

    It sounds like you've received a self billing invoice. The customer raising the self-bill invoice will not include VAT on top unless their supplier has provided their VAT number. So, no, you may have to account for VAT on this.
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