How tax (VAT/GST) is calculated for agent bookings 💰🌍
How it works
- Surreal will apply VAT/GST based on the VAT/GST settings in each recipient’s profile, entertainer and agent
- If you are a payment-handling agent, VAT/GST will be applied to the entire booking amount if either you or the entertainer is VAT/GST registered
- If you are not a payment-handling agent (i.e. Surreal pays your agency and the entertainer separately), VAT/GST will only be applied to your portion of the booking, based solely on your profile’s VAT/GST settings
- Please note: Surreal will always charge either 0% or full VAT/GST on the entire booking amount to the venue for reconciliation purposes. Any VAT/GST not passed on will be remitted to the HMRC/ATO by Surreal (for non–payment-handling agents) or by the agent (if payment-handling and one party in the booking is not VAT/GST registered).
- See examples below
1. Payment-Handling Agent (Agent receives full amount, pays entertainer)
- Entertainer fee: $200 (no GST)
- Agency fee: $100 (+$10 GST)
- Total charged to venue: $300 + $30 GST = $330
- Surreal pays agent: $300 + $30 GST = $330
- Agent pays entertainer: $200 (no GST)
- Agent keeps: $100 + $10 GST
- Agent remits remaining $20 GST to ATO
  - $30 GST paid to agent MINUS $10 GST on sales = $20 remaining
 
2. Non–Payment-Handling Agent (Each party paid directly by Surreal) — Recommended
- Entertainer fee: $200 (no GST)
- Agency fee: $100 (+$10 GST)
- Total charged to venue: $300 + $30 GST = $330
- Surreal pays entertainer: $200 (no GST)
- Surreal pays agency: $100 + $10 GST = $110
- Surreal remits remaining $20 GST to ATO
  - $30 GST paid to Surreal MINUS $10 GST paid out to agency = $20 remaining
 
Agencies on Surreal have two payment options:
- Direct distribution by Surreal to both agency and entertainer bank account for their relevant payments (known as Non Paying Agents) OR
- Agents receiving total payment amount settled to their bank account and managing payments outside the software (known as Paying Agents).
For non-payment handling agencies, the payment process involves:
- Venues generating weekly performance invoices
- Surreal automatically creating invoices for your agency and entertainers per performance
- VAT/GST is added as invoice line items based on individual agency and entertainer settings.
- Surreal distributes payments to your agency and entertainers upon receiving funds from the venues. 
For payment handling agencies:
- Venues create weekly performance invoices
- Surreal generates invoices for your agency and entertainers per performance.
- VAT/GST is added as invoice line items based on the individual agency settings.
- Surreal distributes payments to your agency and entertainers upon fund receipt.
