How is turnover calculated on commission based sales?
I have a UK business that operates in two ways and want to do the same in France as an auto-entrepreneur. In the first senario we buy items to resell. We pay for these first and then resell them online. Therefore there is a transaction taking place in order to acquire the products in the first place. Secondly we sell items on behalf of other people and then invoice them a fee for marketing their product and shipping it to the person that has purchased this item online from our store. We don’t purchase these items.
For example if I sell an item for 100 euros on behalf of a customer where they still own the item and I am simply marketing it for them and a buyer purchases the item through my online store then if the authorities take this 100 euros to be my turnover and expect me to declare this then the business is not viable. However if the turnover is the total of the actual fees I charge my customers say 25% of their item’s sale value then it is viable. I would only be expected to pay charges on the income derived from my fees - in this case on the 25%, 25 euros.