UK VAT on commission for online market place

[Peter Windischhofer]

Hi everybody!

My company runs an online market place for refurbished electronics. On the market place are professional German merchants who sell their products mostly to German consumers. My company receives 5% commission on the retail price.

• Is my company required to pay VAT on the commission in the UK?
• If so, can the German merchants retrieve the paid VAT from the German government?

My company is registered in the UK as a LTD in Manchester.

Your help is much appreciated!

Thanks,

Peter