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Do I Need To Pay VAT For UK Affiliate Products?

jgdixon
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Do I Need To Pay VAT For UK Affiliate Products?

Do affiliate marketers have liabilities for VAT from commissions on affiliate product sales from UK based merchants who sell via affiliate networks such as ClickBank?
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tamadoc
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I wondered this as well, though I'm in Sweden. I have noticed, though, that on the occasions I have purchased something through Clickbank that they have added Swedish VAT to the purchase price, so I did some digging in the Clickbank knowledge base.

On their Retail and Wholesale Pricing page they state the following: "ClickBank also collects and remits the European Union Value Added Tax ("EU VAT") and other applicable taxes as required."

So I assume that if they deal with the VAT collection for all sales we, as affiliates, don't need to worry about that. Of course, that just applies to Clickbank. I'm just getting started and haven't signed up for other networks yet. You'd have to check their small print to find how they handle EU VAT.
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jgdixon
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Many thanks for replying

ref: ClickBank also collects and remits the European Union Value Added Tax ("EU VAT") and other applicable taxes as required.


That would be feasible for an applicable VAT rate provided the merchant declares the correct rate and if ClickBank does handle this liability for its members, all well and good.


Regarding earnings tax and national insurance, as in the UK, I doubt its feasible for ClickBank to handle such matters?
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tamadoc
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I suspect that it's Clickbank that has the correct VAT rates for each country in their database and picks the one that matches the country the buyer indicates they are in. There was a drop-down list pre-set to Sweden when I made my purchase.

Since Clickbank is collecting the VAT for the sale, we should not also have to do that.

As for income taxes and NI payments, you do have to handle that yourself. In some countries you can earn up to a maximum amount before you have to register earnings (Sweden taxes even hobby earnings from the first penny!), and I don't know the rules in the UK. In Sweden the easiest way to go is to register as a sole trader.

It looks like there's quite a bit of information here that might help you: https://www.gov.uk/starting-up-a-business

Good luck finding everything you need.
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jgdixon
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ref: https://www.gov.uk/starting-up-a-business

Thanks for the link, much appreciated.

As I've never run any form of business before, I have a lot of research to do before committing to affiliate marketing and opening a Clickbank account, hence posting my question.

I have the incentive however in that I'm out of work at present.

May I ask any UK based Affilorama members what steps you took to establish your affiliate marketing business please?
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This topic was started on Jan 13, 2015 and has been closed due to inactivity. If you want to discuss this topic further, please create a new forum topic.