Am I paying a double form of taxation

notaknowital

Registered User
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Hi, I work off a basic salary along with commission. My question is am I being taxed twice?
Basically if I make €1,000 profit, this figure is deducted of VAT and then my percentage commission comes off this and goes into my wages where I am taxed again.
I am not working long on commission so I am unaware if this is common practise for this type of earnings.
If you could be of assistance I would really appreciate it.
Thank You.
 
Sounds reasonable to me as the VAT belongs to the government and is not part of your employer's profit.

Employer buys a widget for 1 euro (1.21 including VAT)
You sell it for 2 euro (2.42 including VAT)
Gross profit = 2 - 1 (1 euro excluding VAT)
Commission (say 20% for illustrative purposes) 1 euro x 20% = 0.20 euro
Employer returns VAT to government as follows :
Collected 0.42 euro on sale and paid out 0.21 euro on purchase (0.42 - 0.21) = 0.21 paid to VATman.
 
To explain this more simply, you have not made a sale of 1000 euro,
you have made a sale of 826 euro +VAT. The VAT does not belong to you, or your employer and this would be factored into your employers prices.
 
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