Travel Merchants and VAT

[hairyfool]

Although our income is currently less than the current VAT threshold, our accountant has suggested that we consider registering for VAT for the new financial year.

Our question is, if a merchant pay an affiliate 7% commission would this by 7% + VAT or 7% inclusive of VAT, making a net rate of 5.95%?

[morleymouse]

Hi,

It should be 7% + VAT. Im fairly sure if you register as VAT registered with the networks they add VAT onto the payment.

I know with our in house if you add in a VAT number to your details (or email it to me) then VAT is added to any payments

[pistol101]

Yes we add VAT to the commissions when you have a valid vat number.