How do taxes (VAT) work for producers?

As a UK registered company, we are obliged to abide by the laws of England. Part of this is to pay VAT (value added tax) to the UK authorities.

As Todelli's commission is charge for a service provided to our sellers, we are obliged to charge 20% VAT on our commission to UK residents and non-VAT registered members of the European Community.

VAT is currently chargeable by Todelli in the following circumstances:

  • You are UK registered company or self-employed individual
  • You are a company in the EU (not UK) but not VAT registered

VAT is not currently chargeable by Todelli to you in the following circumstances

  • You are a company registered in the EU (not UK) and VAT registered and have provided us with a valid VAT (or equivalent) registration number together with sufficient other evidence that is acceptable to HM Revenue & Customs and as required under EU law and regulation

*Please note: The VAT charge is a legal requirement which goes directly to the tax office, it is not an additional charge to raise Todelli's profits.

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