Commentary

V7.456 Registering an agent for VAT

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.456 Registering an agent for VAT

Part V7 Tax planning | Commentary

V7.456 Registering an agent for VAT

The value of taxable supplies for an agent will be based on the fees/commission he receives from a principal and not the value of goods sold by the principal to the final customer. If an individual partly trades as an agent and partly as a principal, then the combined turnover of his activities must be taken into account.

In many cases, it will be worthwhile for an agent to register for VAT on a voluntary basis – for example, if the following situation applies:

  1.  

    •     he is working for a principal who is registered for

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