Results 1 to 4 of 4
  1. #1
    Member Proverb's Avatar
    Join Date
    November 4th, 2005
    Location
    Portugal
    Posts
    68
    Affiliates in Europe: How do you handle VAT?
    I'm a U.S. citizen living in Portugal. My wife's accountant says I need to pay a 21% VAT tax on the commissions I earn through affiliate marketing (excluding the first 10,000 Euros).

    I'm new to this VAT taxing. I thought it was a tax imposed on the sale of goods or services at the time the sale was made. Is it correct that our affiliate commissions are subject to VAT?

    Any light that can be shed would be appreciated.

    Thanks.

  2. #2
    ABW Ambassador
    Join Date
    January 18th, 2005
    Location
    United Kingdom
    Posts
    1,797
    VAT is an absolute nightmare, to be honest.

    I'm in the UK and don't know if the laws here are the same/similar to Portugal's. However, in the UK, you cannot be charged VAT on income derived from countries outside the EU unless that product or service is used by people inside the EU.

    So, if all your affiliate income is derived from US companies who do not provide goods or services outside of the US/Canada, then you are not liable for VAT.

  3. #3
    Member Proverb's Avatar
    Join Date
    November 4th, 2005
    Location
    Portugal
    Posts
    68
    I'm meeting with an accountant and tax attorney tomorrow to sort through this VAT situation. I've "heard" that you're correct about goods and services bought and delivered in the U.S. and am hoping that's confirmed tomorrow as 99% of my affiliate income is derived from U.S./Canada transactions.

    Otherwise, it is a nightmare since we can't pass on the VAT like retailers do. Would essentially mean double taxation - VAT and IRS income tax. Ouch.

  4. #4
    Newbie
    Join Date
    January 18th, 2005
    Posts
    9
    Interesting thread, I'm curious about the answer as well.

    -Allison Vivas

  5. Newsletter Signup

+ Reply to Thread

Similar Threads

  1. Europe Affiliates Like Which Network Best?
    By Van Yang in forum Worldwide Affiliate Marketing
    Replies: 16
    Last Post: July 20th, 2015, 05:18 AM
  2. How to Handle Deceptive Clicks from Coupon Affiliates?
    By OutdoorPlayToys in forum Couponer's Corner
    Replies: 32
    Last Post: August 8th, 2011, 10:08 PM
  3. Software vertical: affiliates attending A4U Expo Europe 2011
    By Cristian Miculi in forum Events and Gatherings
    Replies: 0
    Last Post: May 18th, 2011, 10:56 AM
  4. Can someone please explain VAT
    By Merchant Consultant Team in forum Midnight Cafe'
    Replies: 12
    Last Post: April 8th, 2010, 02:00 AM
  5. VAT
    By garystarling in forum UK/European Affiliates
    Replies: 2
    Last Post: March 20th, 2003, 11:48 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •