My client has a website, let us call it X.co.uk. My client allows various suppliers to place their products for sale on the web site to the general public. The goods are branded as X.co.uk goods and the supplier remains anonymous to the ultimate customer who pays X.co.uk for the goods.
The customer's money is banked in a 'client account' and cleared funds are remitted to the supplier net of a commission charge which is banked by the client.
Client maintains that his turnover is the commission earned.
The title for the goods never passes to the client and the goods are physically delivered from the supplier directly to the customer.
My client solely provides the platform for supplier to meet customer.
I am inclined to agree with my client but would welcome others thoughts as well.
By the way, the products sold are zero rated so there is no VAT issue?
Many thanks
stormrider
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Replies (4)
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Other legalities of the transactions
1) What if the goods sold are returned? Say, the goods are in bad conditions, "too much melamine" used in the process, etc?
2) I understand that if the "seller" were to own up the TURNOVER figures, he has to take charge of the goods as his purchases. If "unsold" in the process, ie customer finally rejected the goods, the "seller" takes over.
3) If there is a legal case on the transaction, who should be hauled to Court?
4) Where would the jurisdiction of the case be, in (3) above?
5) Do we take up in the ICJ - International Court of Justice?
6) Who can/cannot presides over the ICJ?
7) Advisable to have an experienced international lawyer by your side?
8) Would one think it is easy going if "seller" don't take over the goods as in (2) above? Can "supplier" sue or be sued? X.co.uk's name could turned bad as a result of that "bad" sale.
Sale or Return
While I agree with Neil in that the end customer thinks they are dealing with X.co.uk, I wonder in reality how many sale or return transactions are made with the customer really knowing who the seller was.
The main problem I can see is that the goods are branded X.co.uk.
What does the customer think?
My client solely provides the platform for supplier to meet customer.
No he doesn't, legally he is the seller. If the supplier is invisible to the customer, then the customer is buying from your client in Sale of Goods terms. It follows that the price paid is a sale by your client and turnover is the aggregate value of sales.