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.