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IM and UK VAT

Discussion in 'BlackHat Lounge' started by AM223, Sep 1, 2011.

  1. AM223

    AM223 Junior Member

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    Occupation:
    Senior Project Engineer (Telecoms)
    Location:
    Doncaster, Yorkshire, UK, United Kingdom
    Hi

    has anyone in the UK had to deal with the HMRC and VAT for IM affiliate marketing.

    I don?t have a product and I won?t be employed to provide a service. I plan to only make an income from commissions, any advice?

    HMRC didn?t have a clue when i called,

    Thanks Martin
     
  2. oxonbeef

    oxonbeef BANNED BANNED

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    All the UK rules regarding Internet sales and electronic downloads etc are
    contained in VAT Public Notice 741 and dealt with within Schedule 5
    Services.

    Where sales are being made from business to business (EC both registered for
    VAT) then the VAT is charged where that business enjoys that service. Where
    the customer is an individual (Non registered member of the public) then UK
    VAT must be charged.

    Sales made outside EC then normal overseas rules apply, i.e. no VAT.

    Supplying goods or services within the UK. If your turnover of VAT taxable goods and services supplied within the UK for the previous 12 months is more than the current registration threshold of £73,000, or you expect it to go over that figure in the next 30 days alone, you must register for VAT. However, if your turnover has gone over the registration threshold temporarily then you may be able to apply for exception from registration.
    I don't know if that cleared it up for you.
     
    • Thanks Thanks x 1
  3. Roparadise

    Roparadise BANNED BANNED

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    So that means that affiliates are exempt from VAT,since they are not selling an item,the company is,and they are just get a reward for referring that person to the company?
     
  4. littleg2008

    littleg2008 Senior Member

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    You are not selling anything, you are getting a commision.

    Think of it this way. Resturants - people who get tips, this can also be seen as a commision. They do not pay VAT on those tips (unless your one of those sucky companies that add a set amount of "tips" to your monthly salary and then keep the real tips for themselves.
     
  5. Drink More Tea

    Drink More Tea Regular Member

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    If no sale has been made, then how does the 'commission' arise?
     
  6. AM223

    AM223 Junior Member

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    Occupation:
    Senior Project Engineer (Telecoms)
    Location:
    Doncaster, Yorkshire, UK, United Kingdom
    Think that's helped,

    i called HMRC and said i was getting commissions from sales, not selling the product myself nor am i entering into any contract and providing a service.

    however she told me that i was providing a service to the public,

    so just to be straight, if i only get a commission i do not need to charge or pay for VAT in or outside the UK?