VAT Question - How do you deal with out of scope commission on VAT Return?

[purple]

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I am doing my VAT return, and I am sure I read somewhere that you now need to add commission earnt from other EU states or Out of Scope.

Does anyone know how I deal with these commission I am thinking the likes of

CJ ( Ireland)
Google Adsense ( Ireland)
Amazon ( Luxembourg)
Betfred ( Gibraltar)
Sky Casino ( zero rate???)
Bet365 Casion ( Offshore)

[ian]

I'd get someone to confirm this, but the VAT return is for EU products and associated costs, and not services of which affiliate commision is. You'll need to complete the Euro Sales List regardless.

[purple]

I would ask accountant but they dont always get affiliate marketing.

So what box would I put the commission I earn from EU and out of scope stuff

[ian]

EU sales are box 8 or 9. Can't remember which one, but you'll see when you read the page. Out of scope is out of scope

[purple]

Thanks mate
Now wondering which are EU and which are out of scope

CJ ( Ireland)

Google Adsense ( Ireland)

Amazon ( Luxembourg)

Betfred ( Gibraltar)

Sky Casino ( zero rate???)

Bet365 Casino ( Offshore)

[hrbs]

Hi

There are several points here:

1. All non UK commissions are out of scope for VAT purposes.
This is because for these services, the place of supply for VAT purposes is where the customer belongs (i.e. outside UK) and therefore out of the scope of UK VAT.
For those of you on the flat rate scheme you do not include them in the flat rate turnover calculation.
They are not included in the "VATable supplies" test for VAT registration.

2. The net value is shown in box 6 of the VAT return (HMRC instructions are at http://HRBS.biz/id?405)

3. EC commissions need to be reported to HMRC using the EC Sales List (ECSL). This is a quarterly return used by HMRC for statistical purposes, you do not have to pay the amounts shown on the return to HMRC.

The requirement to report services was introduced 1 January 2010 and the first ECSL was due for the quarter 1 January to 31 March 2010. The deadline was 14 days (paper return) or 21 days (online).

4. Boxes 8 and 9 are for goods and related services (e.g. delivery) only.

With regards to Reverse Charge services, the change in the VAT place of supply rules means that all services from non UK suppliers, bar a few exceptions irrelevant to affiliate marketing, are treated as being supplied in the UK irrespective of where the supplier is based. For affiliate marketing this usually includes design/programming, hosting, PPC (Adwords, MS Adcenter, Facebook) etc.

The value of the reverse charge services must be included in your VATable supplies calculation when working out whether you have exceeded the VAT registration threshold (more information here).

Regards
Keith
HRBS.biz