Share this content

VAT on commissions earned

VAT on commissions earned selling solar panels

Didn't find your answer?

My client is VAT registered sole trader supplying and fitting windows/doors and carrying out small conversions.  He has recently started acting as an agent for a company supplying and fitting solar panels to residential property, in this capacity he only acts as the salesman recieving a commission for each sucessful sale and has no involvement in the installation.  My question is two part one is the commissions subject to VAT and secondly if it is then should he charge 5% as it is in relation to solar panels even though he is not directly installing them, any thoughts would be apreciated


Replies (2)

Please login or register to join the discussion.

By Les Howard
02nd Jul 2019 15:12

The commission is standard rated, not reduced rated.
Reduced rating for the installation of energy saving materials (including solar panels) is being abolished from 1 October 2019.

Thanks (0)
By lionofludesch
02nd Jul 2019 18:43

Who is supplying what to whom ?
The client is supplying a sales service to the solar panel company.

And is he supplying enough to exceed the threshold ?
We dunno. We assume so or you wouldn't be asking the question, I suppose.

Is he supplying solar panels ?
No. So the reduced rate needn't be considered.

Thanks (0)
Share this content