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Can I deduct cost before VAT on commission

Can I deduct any related costs before calculate the VAT on commission charges

We sale goods on behalf of customers, and charge the a commission based on a %. There are often costs on servicing the goods involved. Can I exclude thess costs for VAT calculation, so the customer pay for the servicing charges separately?

For example, goods sold for 10k, servicing is 2k, our commission is 10% + VAT

Sales 10k

Servicing 2k, we agreed to pay the customer 6k 

When we calculate the commission + VAT, should it be 

Service 2k + commission 2k (1.6k+VAT)  OR  Commission 4k (3.3k + VAT)

Thank you!





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14th Nov 2017 18:57

To get an opinion on which you could rely, in the event of any problem with said advice, you would need to pay an accountant/tax adviser.

This a website for "accounting professionals", if you weren't aware. It isn't a website for businesses that want/need something of value but think they should get it for nothing.

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15th Nov 2017 10:03

and, a clear contract, confirming what costs are charged to the 'customer'

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