For VAT Registered Producers
The Host Commission
If the host is VAT registered, their commission will be 12% (10% + 20% VAT). After you claim back the VAT, the hosts nett commission to you is 10%.
If the host is not VAT registed, their commission will be 10%.
The NeighbourFood Commission
Even though NeighbourFood is VAT registered, our commission will be 10%, not 12.3% (10% + 23% Irish VAT). We are able to set a 0% VAT because of a mechanism called reverse charging.
So the NeighbourFood commission will be 10%.
Example 1 - Host Is VAT Registered
Total Revenue: £100
Host Commission: £12.00 (£10 + £2.00 for VAT)
NeighbourFood Commission: £10.00
Total received by Producer: £78.00
VAT (claimed back): £2.00
Overall Total Received By Producer: £80
Example 2 - Host Is Not VAT Registered
Total Revenue: £100
Host Commission: £10
NeighbourFood Commission: £10
Total received by Producer: £80
For Non-VAT Registered Producers
The Host Commission
If the host is VAT registered, their commission will be 12% (10% + 20% VAT).
If the host is not VAT registered, their commission will be 10%.
The NeighbourFood Commission
As NeighbourFood is VAT registered, our commission will be 12.3% (10% + 23% Irish VAT).
Example 1 - Host Is VAT Registered
Total Revenue: £100
Host Commission: £12.00 (£10 + £2.00 for VAT)
NeighbourFood Commission: £12.30 (£10 + £2.30 for Irish VAT)
Total received by Producer = £75.70
Example 2 - Host Is Not VAT Registered
Total Revenue: £100
Host Commission: £10
NeighbourFood Commission: £12.30 (£10 + £2.30 for Irish VAT)
Total received by Producer = £77.70