VAT on commission for online market place

Do I need to pay VAT on commission I earn through an online markt place

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Hi everybody!

My company runs an online market place for refurbished electronics. On the market place are professional German merchants who sell their products mostly to German consumers. My company receives 5% commission on the retail price.

  • Is my company required to pay VAT on the commission in the UK?
  • If so, can the German merchants retrieve the paid VAT from the German government?

My company is registered in the UK as a LTD in Manchester. 

Your help is much appreciated!

Thanks,

Peter

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By shaun king
25th Jan 2017 11:37

The supply B2B cross border in this instance is Outside the Scope as the place of supply is Germany. Get the German customer's VAT number and declare it on the EC Sales List

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