- Joined
- Jul 2, 2019
- Posts
- 1,794
- Reaction score
- 571
Hi,
I know the general advice on this will be to speak with an account, but having had a brief discussion with a couple that I know, neither of them seemed to have a clue, so I wanted to see what the general consensus was on this.
From what I can see the situation is made a bit more difficult due to the fact dan.com are located in the EU, so the guidance doesn't seem very clear, well to me anyway.
My question is what part of the sale proceeds would be classed as VATable income, if any, in the following scenarios:
Scenario 1
Buy it now (without any negotiation).
Domain Price $750
Success Fee (15%) $112.50
Total Payable to Me $637.50 (£496.93)
Now from what I am reading and been advised the VATable income could either be:
1. £0 as the transaction was not in the UK.
2. $750 as I didn't negotiate or provide a service.
3. $750 regardless as all sales are treated as income.
4. £496.93 as the transaction and service dan.com provided was outside of the UK and this was the amount I received in the UK.
Scenario 2
Buy it now (with 5 days of negotiation).
Domain Price $750
Success Fee (15%) $112.50
Total Payable to Me $637.50 (£496.93)
Now from what I am reading and been advised the VATable income could either be:
1. £0 as the transaction was not in the UK.
2. £0 as I provided a service and negotiated the deal outside of the UK.
3. $750 regardless as all sales are treated as income.
4. £496.93 as the transaction and service dan.com provided was outside of the UK and this was the amount I received in the UK.
I was just wondering how you deal with the above and if anyone has any first hand experience?
I should add that I am currently below the threshold, but am skating close to it, so I want to make sure that my rolling total calculations are correct so I don't accidentally slip over it.
Cheers!
DJ
I know the general advice on this will be to speak with an account, but having had a brief discussion with a couple that I know, neither of them seemed to have a clue, so I wanted to see what the general consensus was on this.
From what I can see the situation is made a bit more difficult due to the fact dan.com are located in the EU, so the guidance doesn't seem very clear, well to me anyway.
My question is what part of the sale proceeds would be classed as VATable income, if any, in the following scenarios:
Scenario 1
Buy it now (without any negotiation).
Domain Price $750
Success Fee (15%) $112.50
Total Payable to Me $637.50 (£496.93)
Now from what I am reading and been advised the VATable income could either be:
1. £0 as the transaction was not in the UK.
2. $750 as I didn't negotiate or provide a service.
3. $750 regardless as all sales are treated as income.
4. £496.93 as the transaction and service dan.com provided was outside of the UK and this was the amount I received in the UK.
Scenario 2
Buy it now (with 5 days of negotiation).
Domain Price $750
Success Fee (15%) $112.50
Total Payable to Me $637.50 (£496.93)
Now from what I am reading and been advised the VATable income could either be:
1. £0 as the transaction was not in the UK.
2. £0 as I provided a service and negotiated the deal outside of the UK.
3. $750 regardless as all sales are treated as income.
4. £496.93 as the transaction and service dan.com provided was outside of the UK and this was the amount I received in the UK.
I was just wondering how you deal with the above and if anyone has any first hand experience?
I should add that I am currently below the threshold, but am skating close to it, so I want to make sure that my rolling total calculations are correct so I don't accidentally slip over it.
Cheers!
DJ
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