Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Readers' forum : App your service

29 November 2016
Issue: 4578 / Categories: Forum & Feedback

VAT position on app that collects and pays out fees, less commission earned.

I act on behalf of a client who specialises in developing and providing apps for various businesses. He has developed one that is used by organisers of events and conferences to make the organisation process as easy as possible. My client will charge a monthly fee to the conference organiser for the app.

However as an extra service my client has also developed a system which allows delegates to pay their conference fees online through. It all sounds quite complicated but the principle is that my client will receive a fee from the conference organiser equivalent to 2% of the payment amount collected from the customers.

The client will bank the money into an account in his own company’s name and then make a monthly payment to the event organiser less his 2% commission.

My question is whether this arrangement is exempt from VAT as a financial...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon