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Where Taxpayers and Advisers Meet

VAT treatment on sales

taxaminute
Posts:9
Joined:Sat Nov 16, 2013 10:58 pm
VAT treatment on sales

Postby taxaminute » Thu Apr 01, 2021 6:40 pm

Hi guys please can you let me know the VAT treatment on the following transaction

I sell my products online for example the item cost £100 but I received £90 the website takes 10% which covers the transaction fee for the credit cards and also bad debt insurance because people do fraud

I'm cautious about going over the VAT threshold at 85000 odd, when I record the transaction should I record the revenue you as £90 or £100

As I understand it financial transaction are outside of scope , just wanted to check the correct treatment

les35
Posts:615
Joined:Wed Aug 06, 2008 3:09 pm

Re: VAT treatment on sales

Postby les35 » Thu Apr 01, 2021 6:53 pm

Usually the website acts as your agent, so the 'value' of your sale is £100. The website's fees are costs to you, so treat as purchases in your accounts.


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