VAT(TAX) and B.COM commission
Pertains to South African VAT charges.
Host sets Rate as per cost/profit margin say ZAR 100.00
15% B.Com Commission ZAR 15.00
SUB TOTAL ZAR 115.00
15% VAT ZAR 17.25
TOTAL Rate ZAR 132.25
B.Com Invoice for commission and vat
B.COM Commission 15% of ZAR 132.25 ZAR -17.25
15% VAT on commission ZAR -2.59
Paid to you ZAR 112.41
Less 15% VAT ZAR -14.66
Your income ZAR 97.75
B.Com are not worried about your loss which when you actually do the calculation on realistic values the losses the host incurs is quite staggering. B.Com by way of their calculation are actually claiming more than 15% commission and then the host is paying the VAT on the commission claimed.
So who is looking after who in this scenario?????