1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

Vat

Discussion in 'Business & Tax Advice' started by Dell12345, Sep 10, 2013.

  1. Dell12345

    Dell12345 Registered Member

    Joined:
    Sep 3, 2012
    Messages:
    61
    Likes Received:
    2
    Hi,
    I'll get straight to the point to not bore you, If your earning money online through affiliate commissions do you still have to register for VAT when the time comes? As you cant add VAT on anything as your actually selling products for people.

    Thanks
     
  2. nanavlad

    nanavlad Elite Member

    Joined:
    Dec 2, 2009
    Messages:
    2,592
    Likes Received:
    948
    Gender:
    Male
    Occupation:
    SEO Consultant
    Location:
    Proxy Central
    Gereraly the payment broker takes care of that
     
  3. bartosimpsonio

    bartosimpsonio Jr. VIP Jr. VIP Premium Member

    Joined:
    Mar 21, 2013
    Messages:
    13,210
    Likes Received:
    11,849
    Occupation:
    CYPHERBARTO
    Location:
    $BHTC
    Home Page:
    As an individual you probably don't pay VAT, you pay income tax and it depends on what country you're in and the rules are completely different.
     
  4. thedarkest12

    thedarkest12 Regular Member

    Joined:
    Nov 23, 2009
    Messages:
    475
    Likes Received:
    127
    Occupation:
    Digital Marketing
    Location:
    Manchester, UK
    Home Page:
    In my experience, no, you will be paying taxes on your profits, but it depends how you structure your tax affairs. There are ways around this. You shouldn't be paying VAT, though if you pass the threshold to VAT register you will need to reorganise your tax affairs to be sure you're maximising your tax free earnings.
     
  5. Dell12345

    Dell12345 Registered Member

    Joined:
    Sep 3, 2012
    Messages:
    61
    Likes Received:
    2
    Ive read that affiliate earnings from websites like amazon are ''out of the scope for uk tax'' (im from the uk btw) So even if i was past the threshold i still wouldnt have to register for vat? is that correct? But id still have to pay standard income tax?
     
  6. Dell12345

    Dell12345 Registered Member

    Joined:
    Sep 3, 2012
    Messages:
    61
    Likes Received:
    2
    Thoughts?
     
  7. lancis

    lancis Elite Member

    Joined:
    Jul 31, 2010
    Messages:
    1,683
    Likes Received:
    2,427
    Occupation:
    Entrepreneur
    Location:
    Milky Way
    Home Page:
    In most countries VAT is a tax on the buyer, not the seller. The seller simply transfers that tax further, e.q. you take 20$ from the buyer and deliver it to HM Revenue and Customs (or any other responsible body if you're outside the UK).

    If the buyer doesnt pay VAT, you have nothing to deliver. In your case the "buyer" is the affiliate program operator, if he's payments to you include VAT, you have to deliver it further.
     
  8. BobyBob44

    BobyBob44 Newbie

    Joined:
    Sep 14, 2013
    Messages:
    19
    Likes Received:
    12
    good point!
     
  9. seveneleven

    seveneleven Power Member

    Joined:
    Sep 25, 2012
    Messages:
    668
    Likes Received:
    386
    Gender:
    Male
    Location:
    Online