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- Apr 6, 2016
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Hi
My client is an artist who sells her work in galleries and in a few co-operative set ups, this varies how much commission is paid/received.
Galleries - she tells them the rrp and then they take their commission,varying from 35%-50%from this amount and pay her the remaining balance.
Co-operatives - she pays rent for her space and then they take in turns to man each others stalls. therefore if they sell their own whilst working no commission is paid but if they sell someone else's she then gains commission from then.
My question is do I record the sales from the galleries as:
Sales as the rrp then record the commission as an expense
or
Sales as the income she actually receives from the galleries
I have read through a lot of different forums and there seems to be a few different answers. The two different methods could result in my client having to register for VAT.
Many thanks in advance.
My client is an artist who sells her work in galleries and in a few co-operative set ups, this varies how much commission is paid/received.
Galleries - she tells them the rrp and then they take their commission,varying from 35%-50%from this amount and pay her the remaining balance.
Co-operatives - she pays rent for her space and then they take in turns to man each others stalls. therefore if they sell their own whilst working no commission is paid but if they sell someone else's she then gains commission from then.
My question is do I record the sales from the galleries as:
Sales as the rrp then record the commission as an expense
or
Sales as the income she actually receives from the galleries
I have read through a lot of different forums and there seems to be a few different answers. The two different methods could result in my client having to register for VAT.
Many thanks in advance.