I am seeking clarification on the UK VAT treatment for sales received from stock footage supplies.
One of our client's currently has a second income stream where he receives income from the likes of Shutter Stock, Pond5 etc for every download of the stock footage (photos and videos) that he uploads to their platform and this income is generally paid once a month via Paypal.
All of the platforms are based out of the UK and it is my understanding that they are responsible for the relevant VAT declarations given that the download is from their platform (both B2B and B2C) and that the income received by our client wouldn't be subject to 20% VAT on the basis that their relationship with the platform is B2B.
Effectively, the process is:
1. Our client shoots the stock footage and it is uploaded to the platform.
2. Consumers and businesses download the content from the platform and the platform has to identify whether it is a consumer or business.
3. Our client is paid a set percentage (royalties would probably be the best description) from the platform and they retain the remainder.
Would I be correct in thinking that monies would not be subject to 20% VAT so would in effect be outwith the scope and zero rated?
Your thoughts would be appreciated.