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bigduckontax, Accountant
Category: UK Tax
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I work with a Chinese company. They will be hiring a famous

Customer Question

I work with a Chinese company. They will be hiring a famous makeup designer in London to promote our beauty app through their social channel (presume they have a company which this will be paid to). Our mobile apps is FREE. But we will pay her around .20 for every trackable download. We will do this on a monthly basis. Questions is, do we have to pay VAT.
Submitted: 8 months ago.
Category: UK Tax
Expert:  bigduckontax replied 8 months ago.

Hello, I am Keith, one of the experts on \just Answer, and pleased tobe able to help you with your question.

If she is registered for VAT in the UK then she will charge VAT on her invoices and you, as end user, will have to pay the tax. I assume that you are not registered for VAT as you do not charge for your services. If you are having to pay VAT on her invoices, input tax, and you have no output tax [sales] then you could voluntarily register for VAT to claim the otherwise irrecoverable VAT. However, if you have no outputs, HMRC may well jib and say you are not trading.

I do hope that my reply has been of assistance.

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