Good afternoon,
I am looking for some help with regards to a V.A.T. problem regarding secondary ticket sales:
This is the basic scenario:
I purchase tickets from a Primary Ticket Website - I have included a breakdown on an order to show the V.A.T breakdown (for which I asked for the V.A.T receipt as a one-off - they are not usually issued and I am unable to obtain them for 99% of purchases) - the breakdown is just to highlight how V.A.T is applied to the order, please see further below for the usual scenario in how it operates:
V.A.T Breakdown
4 tickets at £79.75 (including booking fee).
The total cost - £325.50, including postage and packing at
£6.50.
Including VAT @ 20.00% - £53.17
Usual Scenario
Usually I purchase a ticket for £42 on a Primary Ticket Website - (£35 ticket, £5 booking fee, £2 postage for example)
I then receive an email confirmation - however this confirmation does not give a breakdown of V.A.T on it, and I am unable to obtain V.A.T receipts from the Primary Ticket website,
I then sell the tickets at a profit on a Secondary Ticket Website, this is what the buyer on the Secondary Ticket Website sees when purchasing:
No. of Tickets: 1
Price Per Ticket: £81.11
Processing Fee: £15.79 (inc VAT)
Delivery Fee: £2.40 (inc. VAT)
Order Total: £99.30
Total V.A.T: £4.26
From the above order V.A.T is only charged on the Processing Fee, and the Delivery Fee but not the ticket itself,
The money I receive is the Price Per Ticket (£81.11 in above example), I do not receive any information with regards to V.A.T. breakdown from the Secondary Ticket Website, just a summary showing me what they have paid me (a list of the 'Price Per Ticket' fees that I have received),
Further to this on reading the T&C's on the Primary Ticket Website I never actually own the ticket, this lies with the promoter, who supply the tickets to the Primary Website, so the Primary, Secondary or myself ever owns the ticket.
My sales (turnover) are into the V.A.T threshold and therefore need to start paying V.A.T on something - but I don't know what! My concern is because I cannot obtain V.A.T. invoices from the Primary Ticket Website (they do have a V.A.T number) I am going to be faced with having to pay 20% V.A.T on all of my turnover (rather then just the profit), which would work out at about 5 times as much as if I was only paying V.A.T on my profit. I should also mention I am above the threshold for Flat Rate V.A.T so this is not possible.
One final thing - I do not issue any kind of invoice to the buyer - I simply print a shipping label via the Secondary Ticket Website and send them off via a courier.
A number of questions:
1. What exactly (based on the above scenario) do I need to be paying V.A.T on?
2. Does the fact that I never legally own the ticket make a difference? (Acting as an agent in some way?)
3. Any further advice?!
Any help/advice would be greatly appreciated
Thanks
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