There have been some discussions lately on Tes forums regarding VAT. Our finance team have put the below together for Tes Authors to help provide some further detail. We hope you find it helpful. Below you will find an example on how your income as an author is calculated and the VAT considerations. Please also refer to the Tax and VAT FAQ here: https://www.tes.com/help/tax-and-vat-faq It’s important to be clear that any sale on Tes Resources, is actually two different transactions: 1. Firstly, the customer purchase on Tes Resources Marketplace is a transaction between Tes and the buyer. All prices are VAT inclusive, and the VAT paid by buyer to Tes is accounted for by Tes and paid to HMRC. Tes acts as principal in this transaction, and this VAT is Tes’ liability to HMRC. 2. There is then a second transaction, between Tes and the author. This is the royalty. Royalty is calculated on the purchase value after VAT has been deducted, and transaction fees applied if relevant. The net royalty is paid to the author. Where an author has accounting/tax submission requirement, the royalty is the income or revenue that authors should be recording, not the value of the customer purchase. If the author is VAT registered, VAT at UK standard rate 20% is applied within the royalty amount paid. As an example: · When TES makes a sale of £10 to an end customer, this would include £8.33 for the resource, and £1.67 VAT. · If the author is a 'Silver Tier' author, the royalty rate at 75% x 8.33 = £6.25 = author gross income o If author is VAT registered, then the £6.25 is broken down as £1.04 VAT due to HMRC from author and £5.21 net income o If author is not VAT registered, then author net income is £6.25 If an author has registered or deregistered from VAT with HMRC, or has been set up as such incorrectly in our system, then please contact Customer Service via firstname.lastname@example.org to raise a request for amendment by our support team.