It sounds like you’re acting as an agent rather than the principal seller, which makes a difference for VAT. If you’re only taking a commission, normally VAT should apply just to your commission, not the full selling price — but it depends on how the arrangement is set up and invoiced.
If you sell under your own name (i.e., the customer thinks they’re buying from you), then HMRC may see you as the principal and VAT would apply to the whole amount. If instead you make it clear that you’re selling on behalf of the artist and only charging a commission/fee, then VAT would usually only apply to that fee.
It might be worth:
Reviewing how you structure your sales agreements and invoices.
Checking HMRC’s guidance on “agents vs principals” in VAT.
Speaking with an accountant to make sure your setup reflects the agent model.
A lot of small craft shops manage it this way — VAT only on their commission — but the details of how you present the sale are key.
👉 Out of curiosity, are you issuing receipts under your business name or in the artist’s name? That’s often the deciding factor.
