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hunter5
June 25, 2020
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Agent invoices on my behalf, charges me and end client VAT

  • June 25, 2020
  • 1 reply
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Hi all.

 

I have a literary agent who invoices on my behalf and either charges a commission of 12.5% + VAT or 10%+VAT and an additional 5% on behalf of a Lawyer that's VAT exempt as it's US.  I'm VAT registered.  What ends up in my account is a net figure of my fees + VAT, Minus one of the above deductions. 

 

I'm trying to figure out how best to document this in Quickbooks. Any advice welcome.

 

Thanks

 

 

Best answer by MaryLandT

Hi there, hunter5,

 

You have two options to document the transactions in QuickBooks Online.

 

The first option is create an invoice with VAT for the amount paid by the agent. Then, enter a bill with a VAT for the commission taken by the agent. This is applicable if purchases are VAT reclaimable.

 

And, the second one is create only an invoice with VAT for the net income. Here's how:

  1. Click + New and then Invoice.
  2. From the Customer ▼ drop-down, select a customer. 
  3. Review the Invoice date, then from the Terms ▼ drop-down, select the due date.
  4. From the Product/Service column, select a product or service. 
  5. Enter a quantity, rate and change amount if needed.
  6. Select a VAT rate.
  7. Once done, click Save and close.

After that, you can navigate the Receive payment function to enter the agent payment.

 

Stay in touch if there's anything else you need by clicking the Reply button. I'm always right here to help.

1 reply

MaryLandT
MaryLandTAnswer
June 25, 2020

Hi there, hunter5,

 

You have two options to document the transactions in QuickBooks Online.

 

The first option is create an invoice with VAT for the amount paid by the agent. Then, enter a bill with a VAT for the commission taken by the agent. This is applicable if purchases are VAT reclaimable.

 

And, the second one is create only an invoice with VAT for the net income. Here's how:

  1. Click + New and then Invoice.
  2. From the Customer ▼ drop-down, select a customer. 
  3. Review the Invoice date, then from the Terms ▼ drop-down, select the due date.
  4. From the Product/Service column, select a product or service. 
  5. Enter a quantity, rate and change amount if needed.
  6. Select a VAT rate.
  7. Once done, click Save and close.

After that, you can navigate the Receive payment function to enter the agent payment.

 

Stay in touch if there's anything else you need by clicking the Reply button. I'm always right here to help.

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