|
|
Article: LETTER: I don't understand Richard Griffiths' stance on VAT.(Letter to the editor)
- Article from:
- Mortgage Strategy
- Article date:
- January 8, 2007
CopyrightCOPYRIGHT 2007 Centaur Communications Limited. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
From Ian Dalzell
While I agree that it was somewhat lax on the part of Network Data not to warn its advisors that VAT could be payable on their membership fees, I do not understand where Richard Griffiths is coming from.
Where brokers receive commission it is exempt from VAT (see VAT Notice 701/49) and brokers should not register. They can't claim VAT back on any inputs (e.g. stationery - not just network fees).
Indeed, if their income is all exempt from VAT, HM Revenue & Customs will not register them because they are not making "taxable supplies".
It is only where a fee is charged to a client for advice that a supply becomes ...