Forum Moderators: skibum
How does it work with affiliate programs, where there is no set fee for a banner but you are paid per sale or on a profit share basis? Is this still treated exactly the same as regular advertising?
Is this still treated exactly the same as regular advertising?
For non-EU programmes, I advise you to contact HMRC directly and obtain a reference number for their decision. The key will be usually be in establishing the place of supply of services.
I think William Hill makes automatic payments (they don't ask for any invoices - apparently they just pay and that's it) and they also state in their conditions that the reward they pay per referred user includes all costs... including VAT. Is this the type of setup that causes an accounting nightmare? How do you handle these?
At present I am still considering moving to the UK but have not yet decided where to go and setup the business. Would being based outside the EU be worthwhile for a business based solely on affiliate revenue? VAT would obviously not have to be charged, but would the advertising party have to pay it on their end by any chance?
Is this the type of setup that causes an accounting nightmare?
Whether or not you are better off inside or outside the EU is a complex question and one nobody can answer for you. As with most situations, you get what you pay for; and if you end up paying more, you are probably getting more in another form.
As an example, where I am now I have to cover the entire cost of paid maternity leave for staff; but if I were in the UK that wouldn't generally be the case. Looking at the basic tax percentages misses a lot.
