{"id":978,"title":"Teemill VAT invoicing for accounting pros","description":"Value-added tax is a UK-specific sales tax.  Big companies in the UK are often VAT registered and can get the VAT due on top of royalties too.  If you're not VAT registered, or don't know what that is, this blog is probably not for you.","content":"<p>Value-added tax is a UK-specific sales tax. Big companies in the UK are often VAT registered and can get the VAT due on top of royalties too. This blog is for accounts-literate financial professionals, and the point is to explain to an accounts team how the structure of an on demand partner affects VAT return accounting. If you're not VAT registered, or don't know what that is, this blog is probably not for you.<\/p><p><img src=\"https:\/\/images.teemill.com\/5da740b09744b9.38743431.jpeg.jpg?w=1140&amp;h=auto\" alt=\"\" title=\"39292412\"><\/p><p>At Teemill, the customer transaction is between their bank and ours, and we pay you royalties on each sale. Royalties are paid exclusive of VAT automatically, but if you\u2019re VAT registered you can get the VAT due on top of your royalties too.<\/p><h2>VAT Registered Example<\/h2><p>For example, if a white t-shirt that retails for \u00a320 and costs us \u00a310 inc VAT to make, there's \u00a310 profit including VAT to split 50:50: \u00a35 for us and \u00a35 for you.<\/p><p>As royalties are paid exclusive of VAT, our system will automatically pay you the \u00a35 ex.VAT above: Therefore the standard payment will be \u00a34.17. If you\u2019re VAT registered you can claim back the VAT due on your royalties (e.g. the \u00a30.83 balance from your earnings, from the VAT man.)<\/p><p><img src=\"https:\/\/images.teemill.com\/5da740c18eb930.39884390.jpeg.jpg?w=1140&amp;h=auto\" alt=\"\" title=\"39292421\"><\/p><p>When you receive a sale on your store, Teemill will schedule a payment to be made to you exactly 30 days later for that sale. If you're VAT registered, you can then claim back your VAT by advising your accounts team to do the following:<\/p><ul><li><p><strong>Send a VAT invoice including your total royalties paid for the month PLUS VAT due on those royalties<\/strong><\/p><\/li><\/ul><p>and<\/p><ul><li><p><strong>A statement that shows this invoice as well as the payment of ex.VAT royalties made by our system at the end of the month to <a href=\"mailto:pay@teemill.com\" target=\"_blank\" rel=\"noreferrer noopener\">pay@teemill.com.<\/a><\/strong><\/p><\/li><\/ul><p>This will show a balance of the VAT due on royalties you have earned.<\/p><blockquote><p>When you receive a sale on your store, Teemill will schedule a payment to be made to you exactly 30 days later for that sale. We also make VAT balance payments (each Friday) for the VAT amount due, bringing your VAT balance to zero.<\/p><\/blockquote><p>Hey presto, VAT-registered companies accounting with Teemill, made simple.<\/p>","urlTitle":"vat-invoice-teemill","url":"\/blog\/vat-invoice-teemill\/","editListUrl":"\/my-blogs","editUrl":"\/my-blogs\/edit\/vat-invoice-teemill\/","fullUrl":"https:\/\/teemill.com\/blog\/vat-invoice-teemill\/","featured":false,"published":true,"showOnSitemap":true,"hidden":true,"visibility":null,"createdAt":1565092028,"updatedAt":1705125799,"publishedAt":1705071447,"lastReadAt":null,"division":{"id":12,"name":"Teemill"},"tags":[{"id":490,"code":"terms","name":"terms","url":"\/blog\/tagged\/terms\/"}],"metaImage":{"original":"https:\/\/images.podos.io\/5da740a22348e7.38378272.jpeg","thumbnail":"https:\/\/images.podos.io\/5da740a22348e7.38378272.jpeg.jpg?w=1140&h=855","banner":"https:\/\/images.podos.io\/5da740a22348e7.38378272.jpeg.jpg?w=1920&h=1440"},"metaTitle":"","metaDescription":"If you're VAT registered, this blog takes you through invoicing for your Teemill store.","keyPhraseCampaignId":null,"series":[],"similarReads":[{"id":11952,"title":"The complete email marketing guide","url":"\/blog\/complete-email-marketing-campaign-guide-teemill\/","urlTitle":"complete-email-marketing-campaign-guide-teemill","division":12,"description":"Everyone has an email address and most people check their email every day. 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