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Value Added Tax Online Consulting Portal

July 5, 2021 | 30,00 EUR | answered by Steuerberater Knut Christiansen

Hello,

I am planning to launch an online counseling portal for life counseling/coaching. The counselors would be external consultants. I would collect the fee paid by the customer, and the counselors (with a business license) would receive a commission predetermined in the terms and conditions (drafted by a lawyer).

I would need to declare 100% of the revenue for tax purposes. My question now is:

Would it be correct from an accounting perspective to record the paid commissions as an expense for me (similar to a sales commission) and deduct the corresponding VAT as input tax (as long as the counselors are not subject to §19 UStG)?

Or should I deduct the commissions from my revenue and then make a VAT correction?

Thank you!

Steuerberater Knut Christiansen

Hello,

You should please record the amounts paid by customers as your own revenue. For the commissions to the consultants, please create credits plus VAT (except for small businesses). You can then deduct the VAT included in the credits as input tax from your sales tax in the respective month. Correcting your own revenue would not be correct.

I hope this answers your question, otherwise feel free to ask a follow-up question at no cost.

Best regards,

Knut Christiansen
Tax advisor