Be Free & VAT

[Flightmapping]

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Please accept apologies for posting here, but not too many people delving down to the bottom of the menu these days.

I am trying to sort out my dreaded VAT return, and so far have included BA commissions as vatable (even if they haven't paid the previous vat bill or anything else this year).

BA don't answer emails, and Be Free refer you to CJ, who say that any payments are direct between merchant and affiliate, and therefore it is down to where the merchant is based (ie London > vatable). But the payments still show as "Beethree" on my bank statements.

CJ have always said that as they are based in the US for incorporation purposes, they are not subject to VAT.

Companies House has:

BE FREE UK, LTD
190 STRAND
LONDON
WC2R 1JN
Status :Active
Company No. :03454442
Date of Incorporation : 23/10/1997

Country of Origin : United Kingdom

Company Type: Private Limited Company
Nature Of Business (SIC(92)):
7220 - Software consultancy & supply

Is that them?

Also:

COMMISSION JUNCTION UK LIMITED
15 STRATTON STREET
MAYFAIR
LONDON
W1J 8LQ
Status :Active
Company No. :04090641
Date of Incorporation : 16/10/2000

Country of Origin : United Kingdom

Company Type: Private Limited Company
Nature Of Business (SIC(92)):
7487 - other business activities

Accounting Reference Date : 31/10
Last Accounts Made Up To : 31/10/2003 (TOTAL EXEMPTION SMALL)

Now I'm getting very confused? I suppose that existence of a UK subsidiary doesn't make payments vatable if they are run through the parent company?

[Gray]

BeFree are just an adserving company. We have dealt with Lastmin and Travelselect for some time and initially we invoiced the respective companies including VAT and they paid us direct. BeFree then seemed to become involved in distributing the monies and Lastmin and Travelselect moved over to self billing, we receive a monthly invoice and the VAT inclusive amount is paid into the bank by BeFree including the VAT element. On this basis we assume that BA must also pay VAT as either you invoice BA or they self invoice and as a UK based company VAT is payable. I would like to say with confidence that this is how it works with BA but unfortunatly despite serveral months of sales with BA we are yet to receive a request to invoice them for the outstanding commission.

[Flightmapping]

Gray,

"we are yet to receive a request to invoice them for the outstanding commission."

But have you received any commission?

Previously, I got a statement from BA saying the amount had been cleared by electronic funds. I'm pretty sure I've got a couple of cheques from them too.

But recently, I've had nothing. The last payment (or any communication) from them was in early January, and that was for sales going back to October

[Gray]

Only linked to them from late December 2003 and not as yet received any payment even though well over threshold each month and payments showing as approved on BeFree.

Graham