Streamlining VAT Compliance: Key Steps for VAT-Registered Creators
Creators who are VAT registered should complete their VAT number, full name, address, and agree to the self-billing invoice. The self-billing invoice remains valid for a 12-month period and requires renewal after this time, incorporating new withdrawn activities.
A duplicate of the self-billing invoice will be dispatched via email to the creator for documentation purposes. It's recommended that creators retain this information to facilitate VAT reclamation in accordance with HMRC guidelines.
For comprehensive details, please consult the HMRC resource on VAT self-billing arrangements: VAT: self-billing arrangements - GOV.UK.
VAT and Fees on Lounges.tv:
Lounges.tv applies the standard 20% VAT to all purchases, alongside an additional booking fee of £0.42 and a supplementary £0.08 (which corresponds to the VAT for the booking charge). It's important to note that the £0.08 booking fee is applicable solely to live events.
Breakdown of Purchases:
We prioritise transparency in transactions by providing a comprehensive purchase breakdown to users. This breakdown encompasses the following key components:
- From [Creator Name]: This displays the name of the creator or the event organiser
- Ticket Price: The chosen price at the lounge's creation stage
- Live Booking Fee: A consistent £0.42 fee is attached to bookings
- VAT: Calculated as 20% of the ticket price, with an additional fixed amount of £0.08 for live event booking charges
- Total: The cumulative sum of the Ticket Price, Live Booking Fee, and VAT
We believe in offering clear and accurate financial insights to enhance your experience on our platform. Should you require further details, our dedicated resource from HMRC provides comprehensive information regarding VAT self-billing arrangements.
For more details please visit our T&C's
If you are still encountering issues or would like to leave any feedback on this article, feel free to get in touch.