Agency not established

The taxpayer bought tickets to musical theatrical and sporting events at the request of clients. He included in the sell-on price a commission for his time and travel costs.

HMRC said he made a taxable supply of tickets to customers.

The taxpayer appealed claiming he acted as an agent and his turnover for VAT should be based on his commission rather than the gross payment from each client.

The First-tier Tribunal found the taxpayer always purchased tickets in his own name even though he bought them to order for other people.

His customers treated him not the original vendor as their supplier – and he took the financial risk that a client may not pay for a ticket.

The facts indicated he sold tickets at a profit. He had not proved that he acted as an agent meaning he should be treated...