Hi, so scenario: I sell other people’s items on ebay and amazon for them (some are not VAT registered), I do not own the items, sometimes I do not even see the items. I take a cut let’s say for this example 10% and I am vat registered. I make a sale of £100 for an item, ebay charge me 10% inc vat, I get to claim the vat back. I get a deposit of £100 (keeping paypal out of the equation at the moment) but only 20% of it is mine (i pay the vat out of the 20%). The other £80 is not mine and has never been mine. I send my customer £80 along with an invoice for £20. They have cash or paperwork accounting for the £100
So, how do I account for £100 in my account that does not belong to me? and £80 I am sending to a customer with no invoice from them as they have no need to invoice me for what is theirs anyway. If I accept as payment £100 then give a receipt for £80 as if I had bought the item and resold it, it would wrap it up nice other than the fact that now I will have to pay vat of an invoice of £100 instead of £20.
There must be an obvious way that i am overlooking for companies such as debt collection etc.
Thanks In advance.