Groupon
noodles
Registered Posts: 308 Dedicated contributor 🦉
Hi
I have a non vat company and they did a deal with groupon and basically they get revenue less a huge commission and receive a tiny amount in the bank. I have recorded the revenue and now they have hit their VAT threshold and are of course not happy as they only receive a tiny amount of this. I tried to explain it does not matter but they are convinced groupon is different and should not be part of their VAT threshold limit.
Any one know or have any comments regarding groupon as it would be much appreciated. HMRC were no help when I called them
I have a non vat company and they did a deal with groupon and basically they get revenue less a huge commission and receive a tiny amount in the bank. I have recorded the revenue and now they have hit their VAT threshold and are of course not happy as they only receive a tiny amount of this. I tried to explain it does not matter but they are convinced groupon is different and should not be part of their VAT threshold limit.
Any one know or have any comments regarding groupon as it would be much appreciated. HMRC were no help when I called them
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Comments
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Wonder if you could record just the amount after commission as revenue?
Not a straightforward transaction..0 -
Hi Noodles, I'd looked into the Groupon set up some time ago and found this thread on uk business forums, it goes on quite a bit but you might be able to pick up the relevant info you require:- http://www.ukbusinessforums.co.uk/forums/archive/index.php/t-222779.html Hope it helps.0
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Just called HMRC again and this time he seemed to know what he was talking about and said that Groupon is an agent for the company and therefore the full face value of the groupon voucher is the revenue and the costs are commission.0
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To cut a long explanation short you need to gross it up, groupon send a contra invoice ie 2 invoices net off.
See my detailed posts via ukbf
http://www.ukbusinessforums.co.uk/forums/showthread.php?t=222779&page=40
