VAT question

[nekrum]

Hi

This is probably a daft question but as a VAT registered company, if we receive a commission payment from a none-VAT registered company do we have a VAT implication? We wouldn't invoice for this but receive periodic payments.

Thanks in advance..

[MissPHit]

nekrum said:

Hi

This is probably a daft question but as a VAT registered company, if we receive a commission payment from a none-VAT registered company do we have a VAT implication? We wouldn't invoice for this but receive periodic payments.

Thanks in advance..

Commission is not Zero rated or exempt from VAT (there are some exceptions though, i.e. insurance - what is the comission on?).

As you are a VAT registered company, you will be expected to collect VAT on all your activities, including such a receipt. You should subsequently include such a transaction in your quarterly VAT calculation, irregardless of whether it is a regular or one-off receipt.