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Is there vat on commissions?

Car body shop

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A carbody shop has a contract with an insurer whereby he is their preferred supplier. In exchange for this, the insurer witholds a commission from him for each sale. Is this subject to VAT, I suspect not becuase it is commission to an insurer but the end supply is of course vatable?

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chips_at_mattersey
By Les Howard
22nd May 2020 14:02

I think it is vatable.
An insurance commission is exempt only because the intermediary introduces a person to the insurer. I think your example is the other way around.

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