UK VAT of 20% will be charged on seller's commission when the buyer location is from the UK with purchase currency in GBP. Please refer to the example below:
UK VAT on seller commission scenario:
UK Seller & UK Buyer : UK VAT 20% will be charged on UK seller commission
Thailand Seller & UK Buyer : UK VAT 20% will be charged on Thailand seller commission
UK Seller & Thailand Buyer : UK VAT will not be charged because the buyer is not from UK
Special double taxation scenario applies to the following:
Singapore Seller & UK Buyer : SG GST 7% + UK VAT 20% will be charged on seller commission
Indonesia Seller & UK Buyer : ID VAT 11% + UK VAT 20% will be charged on seller commission
Australia Seller & UK Buyer : AU GST 10% + UK VAT 20% will be charged on seller commission
Sample calculation
If you are Singaporean selling to UK buyer at a price of SGD$100 assuming the seller commission is 4.99%, you will receive an earning of SGD$93.66, calculated as follow:
| Selling Price | SGD 100.00 |
| - G2G Seller Commission @ 4.99% | SGD 4.99 |
| - SG GST | SGD 0.35 (SGD 4.99 x SG GST @ 7%) |
| - UK VAT | SGD 1.00 (SGD 4.99 x UK VAT @ 20%) |
| Net Earning Payable to Seller | SGD 93.66 |