Okay, this is my situation…
1. My business is registered in Malta, this tax year i will exceed the VAT threshold on my affiliate income.
2. I am registered for VAT in Malta
3. My expenses are a laptop, domain names, Google Adwords, Facebook ads etc
4. My Income: Affiliate Networks in EU and USA
So based on all this, would I need to charge VAT from my affiliate networks? And do I need to pay VAT when I buy traffic on Adwords and Facebook ads?
I know this is a tricky area but any insight is appreciated
Get a better accountant! You should not pay VAT as an affiliate. You are not selling goods or services. You are working on commission and is not subject to VAT – unless your country have different rules.
I have a similar problem and im changing my accountant also. VAT should be only applied to EU countries and Canada/USA is not subject to European VAT. What my accountant asked me to provide was the proof that all of the companies that pay me are tax payers in their own countries. In Canada its CRA Number and US its EIN(Federal tax number). EU companies such as Adsimilis got VAT numbers that you can get from them just in case you need it.
My accountant asked for the same info. Getting this info from the networks is a challenge.
The Article Published IN 09-07-2011 01:07 PM