VAT on a rebate cashback - Agent or principal?
How do businesses like Quidco structure the VAT on commission they receive?
Fantasy example:
- Landscaper offers £20 to/for new customer or referral.
- I find customer and offer them £10 rebate/cashback.
- Landscaper pays me the £20 and I owe £10 to the customer as it was never my income and owed to customer from the start.
Can this be structured from the start so that I only pay VAT on my £10 not the whole £20 as £10 is client money passing -through?
Perhaps an agreement with the source/landscaper that my fee is separate to the cashback?
Posted Mar 4, 2026, 12:09 PM UTC
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