VAT Threshold Query

accsvalue

Registered User
Messages
51
A service company acting as an agent receives a 20% commission on all placements.

Company receives €100k for the year and hands €80k over to workers.

Is the VAT threshold based on the commission of €20k (below the threshold) or the gross of 100k?
 
Depends on whether you are a disclosed or undisclosed agent. If disclosed, your sales = the commission. Otherwise, your sales = what you receive from the principal.

You would need this very clear before beginning to operate as there is a complete difference on what is vatable depending on which category you fall into. Seek some advice.
 
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