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Readers’ forum: Agent fees

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30 March 2021
Issue: 4786 / Categories: Forum & Feedback
VAT on commission for sale of painting.

I act for a UK based agent in the world of art and he has just agreed a lucrative deal that will earn him a large commission.

My client is registered for UK VAT.

His customer is a private individual in Australia – he has found a buyer for a painting owned by the Australian that is currently located in a gallery in the Netherlands.

The buyer is based in Sweden so the painting will move from the Netherlands to the mansion of the buyer in Sweden. The buyer will directly pay the Australian and my client will invoice the Australian for 10% of the price as his commission.

As I understand it my client’s fee will not be subject to UK VAT because the place of supply will be Australia where my client’s customer is based. Is this correct?

To add a twist my client...

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