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Vat and website query

Vat and website query

Hi all

I am Acca qualified but due to ill health have not worked fully for a number of years and am having 'brain freeze' regarding a particular issue.

Basically I am looking at setting up an Etsy type website ( but for a particular genre) where crafters can sell their pieces and I take a commission. Firstly, do I account for the price of the ,say, necklace as my sales figure, or just the commission on it. And secondly, how does vat work if say I am not vat registered but the crafter is, or vice versa? Finally are there any special rules/ schemes that I should be aware of with this type of business?

Please can someone help straighten out my muddled thinking!

Thanks in advance


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04th Feb 2013 18:04

What does your agreement with the buyers and crafters say.

Are you acting as agent or principal.

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04th Feb 2013 18:32

Hi Chris

It's all just in the planning stage at the moment. I would probably act as agent, and not actually take possession of the goods myself at any time .


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04th Feb 2013 18:33

Devil is in the detail

As Chris says, agent or principal is the key to this.  I would hazard a guess that, to avoid being liable for any defects etc in the pieces, agency may be best, where the commission is your only sale.  Any VAT that is due to the seller is their issue and they need to list prices including VAT, or be clear that VAT is added in the final price. There could be other complications of course, like exports etc!

Ebay produce some helpful notes on VAT.  These might help.

Hope this helps

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04th Feb 2013 18:52

Thanks VAT doctor, will have a read of those notes.


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