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Third party VAT where one party isn't at threshold

Three parties involved and the intermiedery isn't at VAT level, but the others are

Hello,

Quick question; if I’m acting as an intermediary for a ‘celebrity’ who charges VAT and I’m invoicing a company that pays VAT, but I don’t pay VAT what is the workaround if the mark up is 20 percent and therefore not worth it if VAT can't be charged.

I'll paint a picture. All people / companies used here are purely for example purposes 

An agent (Jim) is in contact with David Beckham.

Adidas want to offer a deal to David Beckham.

Adidas are in contact with Jim and not Beckham.

Beckham pays VAT and so do Adidas, but Jim does not and his markup is 20 percent. 

Beckham wants to charge VAT, Adidas are willing to pay VAT (but not an additional base fee), but Jim can’t charge VAT because he doesn't earn the threshold every year.

Is there anyway around it that doesn’t involve Beckham invoicing Adidas directly

Thank you in advance!! 

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By Matrix
13th Mar 2019 06:38

You can voluntarily register for VAT.

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13th Mar 2019 08:32

Agree with Matrix. You don't need many celebs on your files to get to the threshold anyway if you are any good as an agent.

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13th Mar 2019 10:00

Your picture doesn't fill in many of the blanks.

What do you actually do? Are you an agent? Who do you supply? Who do your clients supply? What is the agreement you help negotiate? Who is the customer's deal with?

VAT is a tax on supplies, we would need to know who supplies what to whom to give you a proper answer, though the proper answer is probably to talk to your accountant.

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