Vat

Dell12345 · Sep 10, 2013

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

nanavlad · Sep 10, 2013

Gereraly the payment broker takes care of that

bartosimpsonio · Sep 10, 2013

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.

thedarkest12 · Sep 10, 2013

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.

Dell12345 · Sep 13, 2013

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?

Dell12345 · Sep 13, 2013

Thoughts?

lancis · Sep 13, 2013

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.

BobyBob44 · Sep 14, 2013

good point!

seveneleven · Sep 14, 2013

Vat

Dell12345

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nanavlad

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bartosimpsonio

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thedarkest12

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Dell12345

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Dell12345

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BobyBob44

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seveneleven

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