Site manager wants to charge 15% commission & 20%vat

Davanshe

I am selling my static caravan and the site owner wan's to charge me 15% commission ( whether he sells it for me or I sell it myself). He then want's to charge me 20% vat, even though I am not registered for vat. Can he legally do this?

Head_The_Ball

What does your contract say about 15% commission on the sale of a unit? If such a charge is listed there than it is legal and fair.



In my inexpert opinion, if he is VAT registered then not only can he charge you VAT, he must charge you VAT on any sale or service that incurs VAT. He would be breaking the law if he excluded VAT from your invoice unless it is a VAT exempt sale or service.


Most of us are not VAT registered but we still get charged VAT when we buy goods and services from shops, businesses etc unless the items are VAT exempt such as most foodstuffs and childrens' clothes or the service supplier is below the VAT threshold.

All but the smallest caravan sites are probably above the VAT threshold and must be VAT registered and must charge VAT for applicable services.

That is my understanding of VAT. Others more knowledgeable may disagree.

phill99

Your VAT registration or lack of it is irrelevant. It's whether they are VAT registered that is the issue.


Whether he can charge a fee will depend on the contract.

Furts

Head_The_Ball wrote: »

All but the smallest caravan sites are probably above the VAT threshold and must be VAT registered and must charge VAT for applicable services.

All static caravan sites will be VAT registered regardless of turnover. I say this because if they were below the threshold they would volunteer to be VAT Registered. This is a legitimate procedure.

There are sound commercial reasons to be Registered and it would be foolish for them not to do so.