VAT advice

purpleelephant60

Hello, I'm hoping someone out there can help me.
I am a franchisee (sole trader) and am selling my business.
As a matter of course, the franchisor lists any resale opportunities on their website, along with new franchises available.
My franchise agreement prescribes that if a buyer comes via them, ie contacting them to enquire about available franchises, then I must pay them a 10% 'finders' fee'. 
Fair enough.
However they are also charging me VAT on the 10%, and I am trying to find out whether this is indeed a transaction to which VAT is applicable. They aren't selling me goods, and I don't believe they are selling me a service. 
Any advice would be gratefully received as I'm struggling to find an answer online!
Thank you.

InMyDreams

I can’t see a reason VAT would not be added. They are supplying a service - they have provided you with a buyer.

Bookworm105

however you want to dress it up: commission, finding a buyer, slice off the top, the fact remains they ARE providing a VAT taxable service.
I assume you are not yourself VAT registered so can't claim it back. In case, sorry but it will cost you 10% + VAT to sell up.