VAT on Commission

Diddy Mau

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

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.