VAT on walking tour

by **amitr19** on Wed Nov 02, 2011 4:50 pm

Hi

I am a reseller of walking tours. The service is walking tour around London including admission to some musuems and galleries. My reseller is not VAT registered. I just make a margin on every sale I make. For example if I sell a tour ticket for £20 then I get £4 as my commission.

I am VAT registered. Do I have to account for VAT on the whole £20. I dont want to charge more than £20 which mean if I do I will have to take the hit. Would be also be on the full £20?

Thanks

by **Generix** on Wed Nov 02, 2011 5:12 pm

amitr19 wrote:Hi

I am a reseller of walking tours. The service is walking tour around London including admission to some musuems and galleries. My reseller is not VAT registered. I just make a margin on every sale I make. For example if I sell a tour ticket for £20 then I get £4 as my commission.

I am VAT registered. Do I have to account for VAT on the whole £20. I dont want to charge more than £20 which mean if I do I will have to take the hit. Would be also be on the full £20?

Thanks

strictly speaking it depends on the contract and whether you are selling as agent, principal or as an undisclosed agent/commissionaire?

by **amitr19** on Wed Nov 02, 2011 6:10 pm

as an agent.

I charge the client the full price. I then transfer the balance less my commission to my supplier.

by **towat** on Thu Nov 03, 2011 10:21 am

Do you need to be VAT registered? i.e. is your turnover above the registration limit? if it is then why isn't your supplier VAT registered, or do you have several small suppliers?

by **amitr19** on Thu Nov 03, 2011 10:41 am

I have several small suppliers and I am registered for VAT...

by **Generix** on Thu Nov 03, 2011 12:59 pm

If what you say is correct then its likely you may treat the supply of the ticket as not a supply by you, i.e. like disbursement, and only the commission will be VATable.

However that depends on a lot of ifs and buts and tightly worded contracts in my opinion.