How does VAT work in the case of referral fees?
Say for example I made an arrangement where I paid a referral fee for every customer that comes through a certain channel. So customer comes to me (via channel) and we do business and customer pays me R1140 (R1000 + VAT). Let's say the referral fee is R100. Does the referring body make out an invoice and charge VAT on that, or would I just pay them the R100?
I would think that I would just pay the R100, seen as VAT is levied on the end customer.