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Posted Sun, 24 Mar 2024 16:32:34 GMT by Shreyans Jain
We are an UK based eductaional consultancy firm and having a wide network of sub contractor working for us to recruit students for our UK based universities on commission basis . Many universities now don't offer VAT and we pay our overseas sub contrator almost 70% of our commission whcih we receive from universities. Do I need to pay VAT on full 100% , in that case I left with only 10% commission or Do I need to pay VAT on 30% ( actual amount of commision left with us in the uk ) , in that case I left with 24% commission part. Please suggest .
Posted Tue, 26 Mar 2024 09:24:16 GMT by HMRC Admin 21 Response
Hi Shreyans Jain,
If you receive an amount of commission in the UK then this would be a Vatable supply and hence your business would account for the VAT on all of this commission.
Thank you.

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