[qualityunit]

Hello,

I saw huge discussion in multiple threads about affiliate taxes, but one thing is not clear to me.

If I'm merchant from Europe, do I need to handle affiliates from USA in different way as all other affiliates ?

Thx. for help.

[MichaelColey]

You shouldn't need to since you're not in the US, but some of the US merchants using your software might need some special reports.

[qualityunit]

Do you know which types of reports merchants need ? Maybe we could implement it ahead for them.

Does affiliate need any special report as well ? Should be tax deducted from affiliate commissions automatically ?

[MichaelColey]

Taxes deducted from commissions? Absolutely not. It's not the affiliates who owe taxes. It's a sales tax on consumers. Merchants who have a physical presence in a state are required to collect the sales tax from consumers and remit to the jurisdictions within the state.

The new twist that all of the "affiliate tax" laws have is that they're saying that certain levels of affiliate activity within the state constitute a physical presence by the merchant.

The main report I see merchants needing is something that would show the total affiliate sales during a timeframe from affiliates within a specific state.

[qualityunit]

thank you for suggestion of report, I reported it to our developers.

It seems to me, that merchants will need not just reports, but also closer integration of shops with affiliate softwares - they will need e.g. to display correct tax to customer depending on affiliate link, which used visitor, when entered shop/web site.

Do you know about any network or any in-house affiliate software, which solved this already ?

Thx.

[MichaelColey]

Nope, once they have a physical presence (a "nexus"), they have to collect sales tax on ALL orders shipped to that state. At that point, which orders are affiliate orders and which ones aren't becomes irrelevant. They have to collect tax on all of them.

[qualityunit]

ok, I see. thx.