VAT advice needed

A

ardvark

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Hi guys.

My dating affiliate manager has contacted me about considering registering for VAT as my earnings are not far off the threshold.

Couple of questions -

I don't actually sell anything myself, im just the affiliate, so i presume i would just be claiming for VAT charged by companies for advertising expenses etc.. Is that right?

Also, i thought VAT was mainly used for sales from EU countires, my main income is from USA sales so surely i will be well below the threshold amount?

Any help would be much appreciated, thanks!
 
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Do you have any other source of income from IM apart from this one dating affiliate?
 
MisterF said:
Do you have any other source of income from IM apart from this one dating affiliate?
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Thanks for the quick reply mate!

No, just this affiliate company
 
ardvark said:
Thanks for the quick reply mate!

No, just this affiliate company
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Best suggestion is to find an accountant / tax advisor local to you who offers a free 30 minute consult.

This might give you some pointers, I'm not an accountant though;

https://www.gov.uk/vat-registration/when-to-register
 
i fort vat was a choice in your case dont understand what you gain .

i think it best asking the afflicate admin what the pro and cons in registering for vat.

maybe there a real good reason that you have mised .

maybe he thinking of all the services you use for vat refunds.
 
I have to pay. VAT as well and I only get affiliate income as well. In certain countries (in my case germany) you just can't get around it. Best thing you can do is talk to a tax advisor
 
Heiko said:
I have to pay. VAT as well and I only get affiliate income as well. In certain countries (in my case germany) you just can't get around it. Best thing you can do is talk to a tax advisor
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it ok the link is solid proof the officers even use it in there office.
 
if you doing business and from a foreign country you got to pay vat and tax no matter of your income amount .
 
redarrow said:
i fort vat was a choice in your case dont understand what you gain .
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Far from it. VAT is a complex issue, particularly when it concerns intra-EU VAT supply/consideration. I had to send my accountants every affiliate agreement so they could check the wording.

redarrow said:
i think it best asking the afflicate admin what the pro and cons in registering for vat.
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This is terrible advice. Why would recommend asking an affiliate manager about VAT and not advise they seek professional advice from an accountant?
 
redarrow said:
85k over you got to register vat if earnt within 12 months period.

if you want to register under 85k it voluntary.
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Yes and in some cases it's better to register voluntary.

A popular example was the old UK milkman who delivered milk door to door.
Milk was free from VAT, but he could claim back expenses such as fuel, vehicle costs etc etc.

Which is why a good accountant will more than pay for him/herself ;)
 
redarrow said:
if you doing business and from a foreign country you got to pay vat and tax no matter of your income amount .
Click to expand...

Unless you're a tax specialist / accountant, you're just speculating here my friend.
 
I notice you are from the uk, as am i.

As a uk business, it is a legal requirement that you have to register for vat if your income exceeds £85,000. It is also a complete pain in the arse, as you become a free tax colector.

As your affiliate manager brought it to your attention, explain to him, when you do you will have to levy vat on all income they pay typically this is 20%, but check. That means you need to invoice them affiliate commission +20%.

If they are used to doing business with people in the uk, they will know the drill. If they are from outside the uk, they can claim the 20% back or talk to your local vat office and explain your clients are out of the uk and europe and can you just sort the paperwork and not charge them vat.

But if you ignore it, they will deduct 20% from your income to cover it.

You can f**k with any department in the uk government, except these guys, they just send you to prison.
 
ardvark said:
Hi guys.

My dating affiliate manager has contacted me about considering registering for VAT as my earnings are not far off the threshold.

Couple of questions -

I don't actually sell anything myself, im just the affiliate, so i presume i would just be claiming for VAT charged by companies for advertising expenses etc.. Is that right?

Also, i thought VAT was mainly used for sales from EU countires, my main income is from USA sales so surely i will be well below the threshold amount?

Any help would be much appreciated, thanks!
Click to expand...



Hi,

Which country are you resident to?

Which country is your company resident to?

Are you running your business from a Ltd company or Sole Trader?

Which country is your business bank account registered to?
 
MisterF said:
Yes and in some cases it's better to register voluntary.

A popular example was the old UK milkman who delivered milk door to door.
Milk was free from VAT, but he could claim back expenses such as fuel, vehicle costs etc etc.

Which is why a good accountant will more than pay for him/herself ;)
Click to expand...

Hi mate, you seem the best person to ask. I understand £85000 is the amount to apply.

I thought VAT registration was only applicalble on EU sales, not USA.

Eg - 35000 EU Sales, 50000 USA Sales

So with regards to VAT , i would only be upto 35000 and well below the VAT registration requirement?

Or am i totally wrong? :)
 
TheAlmightyDada said:
Hi,

Which country are you resident to?

Which country is your company resident to?

Are you running your business from a Ltd company or Sole Trader?

Which country is your business bank account registered to?
Click to expand...

UK

Isle of Man

Sole trader

UK
 
Who is the affiliate company? If they are asking you about VAT registration, they will likely have some physical presence in Europe.

Some of the larger affiliate networks have complex setups, with multiple entities, presumably to minimise their tax obligations.
 
ardvark said:
Hi mate, you seem the best person to ask. I understand £85000 is the amount to apply.

I thought VAT registration was only applicalble on EU sales, not USA.

Eg - 35000 EU Sales, 50000 USA Sales

So with regards to VAT , i would only be upto 35000 and well below the VAT registration requirement?

Or am i totally wrong? :)
Click to expand...


Basically if the income is coming to you it's still all counted is my understanding.

In all seriousness, go speak to a tax specialist accountant mate, save yourself any possible issues in the future.
 
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