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Vat

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

  1. Dell12345

    Dell12345 Registered Member

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    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 Jr. VIP Jr. VIP Premium Member

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  3. bartosimpsonio

    bartosimpsonio Jr. VIP Jr. VIP Premium Member

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    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

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    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

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    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

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    Thoughts?
     
  7. lancis

    lancis Elite Member

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    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

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    good point!
     
  9. seveneleven

    seveneleven Power Member

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    Well I have been in business myself for 28 years so here is my $1 worth:) If you are receiving commissions there is no VAT to pay its based on turnover ( sales) -
    VAT Helpline:
    Opening hours8.00 am to 6.00 pm, Monday to Friday
    Closed weekends and bank holidays 0300 200 3700

    Ask them the questions and just blag them about your looking to setup a business.

    Scenario 2:
    You was selling something and you reach the VAT threshold - £70,000 you MUST register for VAT then which is currently 20% in the pound

    http://www.hmrc.gov.uk/vat/managing/problems/getting-answers.htm

    VAT rates, thresholds, fuel scale charges, exchange rates

    http://www.hmrc.gov.uk/vat/forms-rates/rates/rates-thresholds.htm

    General Tax Info:
    http://www.hmrc.gov.uk/individuals/