This article explains who must issue the invoice/receipt to the buyer when a booking is made through Hurak, and how commission and payouts work.
It is intended for training providers and accounts teams.
You (the training provider) supply the training to the learner.
You issue the buyer an invoice/receipt for the full course price (gross).
Where a VAT invoice is required (for example, a VAT-registered business customer), you must issue the VAT invoice to the buyer (the learner/business booking the course).
Hurak provides marketplace/agency services to you and charges a commission/marketplace fee.
Hurak invoices you for that commission/fee.
Hurak collects payment at checkout and settles/pays providers according to the agreed schedule (for example, monthly settlement with payout on the 28th of the following month).
Books the course and receives the training service.
Delivers the training and sets the course terms (including cancellation/refund policy).
Remains the supplier of the course to the learner under the marketplace model described here.
Introduces learners to your courses, facilitates the booking, and processes payment.
Supplies its own services to you (marketing/booking/admin) in return for a fee/commission.
HMRC’s VAT Notice 700 explains that an agent is typically involved in at least 2 separate supplies: (1) the supply between the principal and the third party, and (2) the agent’s own services supplied to the principal for a fee/commission.
HMRC’s VAT Notice 700 states that provided invoicing for the supply is between the principal and the customer, the agent’s only supply (for VAT purposes) is the agent’s services to the principal.
For selling agents acting in the name of their principals, HMRC then sets out the invoicing outcome clearly:
If the principal is VAT-registered and the supply is taxable, the principal must issue the VAT invoice made out to the customer, and it can be sent either directly or through the agent to pass on to the customer.
In that same scenario, the agent only accounts for VAT on the agent’s services to the principal (the commission/fee).
This is why, under the agent model, the provider issues the buyer invoice for the gross course price, and Hurak invoices the provider for commission.
Invoice/receipt in the provider’s name for the full course fee (gross).
If the buyer is a VAT-registered customer, HMRC guidance states you must issue a VAT invoice to a registered person (subject to the listed exceptions).
HMRC also explains when a full VAT invoice is required (for example, where the transaction is more than £250, or £250 or less but the customer requests one).
Hurak issues an invoice to the provider for Hurak’s commission/marketplace fee (Hurak’s supply of agency/marketplace services).
Hurak collects the buyer’s payment at checkout. Provider payouts are made according to the agreed settlement schedule.
Your reconciliation typically looks like this:
Sales income: full course fee (gross) charged to the buyer
Expense: Hurak commission/marketplace fee plus transaction fee (per Hurak invoice)
Cash received: net payout after commission (and any agreed adjustments)
If a learner pays £100 and Hurak commission plus transaction fee is £33:
Provider invoice/receipt to buyer: £100
Hurak invoice to provider (commission plus transaction fee): £33
Hurak payout to provider: £67
HMRC’s guidance is that issuing an invoice in the agent’s own name is a strong indicator the agent is acting in its own name.
Where an agent acts in its own name, HMRC explains the agent can be treated (for VAT purposes) as being in the supply chain and liable to account for VAT on the underlying supply, as well as on the agent’s own services.
Hurak therefore operates on the basis that invoicing for the training supply remains between provider and learner, consistent with the “agent acting in the principal’s name” model in VAT Notice 700.
Yes, VAT Notice 700 states the principal’s VAT invoice can be sent either direct to the customer, or through the agent to pass on to the customer.
If Hurak sends an invoice, it must be the provider’s invoice (issued in the provider’s name as the supplier), not a Hurak invoice for the training supply.
You can still issue the buyer’s invoice/receipt even if you have not yet received funds from Hurak.
Why: the invoice relates to your supply of the training to the buyer. Under HMRC’s agent model, invoicing for the underlying supply is between the provider (principal) and the customer, and the invoice can be sent direct to the customer (or via the agent).
How to do it:
Invoice the buyer for the full (gross) course price at booking confirmation.
Mark the payment as “Paid via Hurak” (or “Payment processed via Hurak”) and reconcile later when Hurak settles to you using the payout statement.
This article summarises HMRC guidance on VAT invoicing and agency arrangements. Providers should confirm their specific VAT position (including whether their supplies are taxable/exempt and their invoicing obligations) with their accountant.