A Band and Theatre Ticket VAT

[KevJager]

We are a band that are contracted to play a number of theaters in Scotland in 2018. The issue we have is the agreed split on gross ticket sales is 50/50, we have just been informed that, (although not mentioned in the original contract wording) we are expected to pay VAT on our share of the Gross split. This could be a serious chunk out of our (hard) earnings whilst we have played for similar theaters whereupon we dont get charged VAT on our split. It seems as if there is no definitive answers to this question and a LOT of grey areas and complicated suppositions and questions that we are not able to answer.

Anyone any ideas and we will TRY to answer queries?

[pawncob]

Is the agreement with the theatre or your/their agent? If it's with the theatre, then they've got to pay VAT on the gross take and then pay you, so you get paid net. It does depend upon what's in the contract. (Gross ticket sales are normally defined as after relevant taxes)