how to repay the V.A.T

[bambinou]

Dear All,

I am having a little problem at the moment, i am setting up a website where artists/bands will sell their musics.
Where i am a little confused is about the V.A.T repayment to the V.A.T registered artists/Bands.

For example,(for a V.A.T registered Band)

If a band sells 10 songs at £1 each , this means they have sold a total of £10, but my business will have to add the V.A.T (inclusive) in this total.
Now we have £8.56 of sales + £1.49 of V.A.T .
If i charge a 50% commission on this ,i will have to repay £4.26 +£0.74 of V.A.T to the artist. Is this right?

Now the artist will have to create a sell billing V.A.T invoice, do you have sample form that could help me to understand what needs to show on this form please? Thank you.

My last questions:

When i will repay this artist his V.A.T portion, what should i asl for proof of V.A.T registration, because if they give me just a number it could be a little scarry no?

If i wish to have the HMRC to repay me the portion of V.A.T i have repayed to the artist, do i need to provide a proof of each sell billing invoices?


Thank you very much for your help,


Bambam

[profitxchange]

You only need to worry about VAT if you and or the party your trading with are vat registered. If neither of you have reached the VAT threshold, don't registrer for VAT unless there are other reasons.

You should have an accountant to advise or call the customs and excise and ask them - they are there to help - you might just be surprised.