Overview
UK VAT of 20% will be charged on seller's commission when the buyer's location is from the UK. Please refer to the example below:
UK VAT on Seller Commission Scenario:
- UK Seller & UK Buyer: UK VAT 20% will be charged on the UK seller's commission
- Thailand Seller & UK Buyer: UK VAT 20% will be charged on the Thailand seller's commission
- UK Seller & Thailand Buyer: UK VAT will not be charged because the buyer is not from the UK
Special Double Taxation Scenario Applies to the Following:
- Singapore Seller & UK Buyer: SG GST 7% + UK VAT 20% will be charged on the seller's commission
- Indonesia Seller & UK Buyer: ID VAT 11% + UK VAT 20% will be charged on the seller's commission
- Australia Seller & UK Buyer: AU GST 10% + UK VAT 20% will be charged on the seller's commission
Sample Calculation
If you are Singaporean selling to a 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 follows:
| Selling Price | SGD 100.00 |
| - G2G Seller Commission @ 4.99% | SGD 4.99 |
| - SG GST | (SGD 4.99 x SG GST @ 7%) SGD 0.35 |
| - UK VAT | (SGD 4.99 x UK VAT @ 20%) SGD 1.00 |
| Net Earning Payable to Seller | SGD 93.66 |