UK how to treat this transaction

Mar 13, 2013
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We are a Ltd company who sell hearing aids. We display adverts in some mobility shops and offer them 20% of the selling price of any leads converted.

The mobility shop are VAT registered; however we are not.

We would prefer to pay the mobility shop (without VAT) as a sub-contracter or pay a finder fee.

Is that acceptable or does the mobility shop need to invoice us and therefore charge VAT.

First post. Any advice much appreciated. Cheers


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