I have just paid £3300 commission to an agent and I am now being charged VAT on this, how come?
Answer:
Im guessing, they are VAT registered and must claim VAT on sales. so they are pushing this cost over to you..
check your contract with the agent, did they say your fee was inclusive or exclusive of vat. if it was inclusive, they cant really invoice you again for the vat...
best of luck
Because it is a service and VAT is payable on any service.
Because the tax system screws you anyway it can
because you are the end user and the commission is value add to you. Hence the need to pay the VAT man,
I don't really understand your question, why wouldn't you pay VAT ?
Its the way it works I'm afraid. People tend to trust high street agents more than new and cheaper rivals who have not reached the VAT threshold thus do not charge it. A friend started a legitimate on-line estate agency in Liverpool called www.simplywoolton.co.uk which sells at .75% commission, capped to £750 for the first 10 customers
He can not fully launch it as following nearly 1000 letters and 2 newspaper adds his phone is yet to ring and he is still waiting for his first email so the search page is not yet live. It seems people are scared to try something new, and then perhaps resentfull of paying more than they could have. Besides that its this spend hungry labour government that would put VAT on fresh air if it could!
That's usual. The service is obviously subject to VAT. If in doubt, you can consult HMRC with your suspicions and they will be able to verify if it's a correct charge or not.
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