Share this content
4

VAT on commision from payment gateway services

VAT treatment of commission for E money instituion

Didn't find your answer?

Hi there,

A client of mine is an authorised e money institution and provides payment account services. They receive money from individuals and corporates and hold them in a client account. They then take commission from this money and settle the amount to the corresspondent bank. They have asked whether they can register for vat and claim back input vat on their expenses. 

I looked up on HMRC website and think that becuase they are into financial services their supply is exempt and hence they cannot register for vat.

Does anybody have experience with this kind of businesses whenther they can register for vat?

Appreciate any help.

Many thanks

G

Replies (4)

Please login or register to join the discussion.

RLI
By lionofludesch
10th Jul 2020 14:04

I vote no.

Thanks (0)
Replying to lionofludesch:
avatar
By paul.benny
10th Jul 2020 14:52

Ditto

But bear in mind that they may have standard-rated income from other activities (eg commission from advertisers on their app or selling add-on services). If so, they would have to register and do a partial exemption calculation.

Thanks (0)
Replying to paul.benny:
avatar
By G JAin
10th Jul 2020 15:19

Good point you mentioned. I will check with them. Thanks for help.

Thanks (0)
Replying to lionofludesch:
avatar
By G JAin
10th Jul 2020 15:18

Thanks for confirming. That's what I thought too.

Thanks (0)
Share this content

Related posts