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KLEENEZE DISTRIBUTORS

WHT IS THE TURNOVER OF A KLEENEZE DISTRIBUTOR? THEY COLLECT THE ORDER AND THE CASH AND SEND IT OFF. THEY ARE INVOICED FOR THE AMOUNT PAID BY THE CUSTOMER LESS THEIR COMMISSION AND ANY CATALOGUES THAT THEY BUY. THEY RECEIVE A FULL INVOCE FROM KLEENEZE. IN MY OPINION THEIR TURNOVER IS THEIR COMMISSION. OTHERWISE THEY WOULD HAVE TO REGISTER FOR VAT IF THEY TOOK A LARGE AMOUNT OF ORDERS. ALTHOUGH THEY WOULD BE ABLE TO CLAIM BACK VAT ON OTHER THINGS THE VAT RECLAIMED WOULD BE MORE MORE THAN EATEN UP BY EXTRA ACCOUNTANTS FEES AND THE HASSLE OF DOING QUARTERLY VAT RETURNS. DOES ANYBODY HAVE A VIEW ON THIS AGREEING OR DISAGREEING

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29th Jan 2012 19:32

CAN YOU HEAR ME OK ?????

IT'S THE COMMISSION ONLY THAT COUNTS AS HIS TURNOVER, UNLESS HE INVOICES THE CUSTOMERS HIMSELF.

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30th Jan 2012 09:54

Commission plus sales

From an accounting point of view that is probably correct, however according to the VATman it is the commission plus the sales. This is based on HMRC's reading of the Kleenee contract.

They had a major push on Kleeneze agents a few years ago and, I suspect, registered quite a large number!

 

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