Vat on commision

MJG

Active Member
Joined
Jul 29, 2015
Messages
90
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Location
East London
Hello.

I am due to work for a business that is VAT registered and sells to VAT registered businesses.
I will be earning a basic plus commission on sales.
Should the company pay my commission on the ex vat amount or the final invoice total that includes the VAT?

TIA
 
VAT shouldn't be considered part of the sale value. Your commission is based on the net amount.
 
Thank you. Please excuse my ignorance and just for the sake of clarity.
The commission is calculated on the EX VAT amount?
Thats how we do it. Maybe your prospective employer has other ideas. Your best bet is to read your employment contract carefully and speak with HR/Sales Manager if you are still unsure.
 
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