FAO UK based members and VAT
For those UK based members who were or are not sure about how we deal with VAT (Value Added Tax) on our payments and commissions let me give you the good news.
I've just been in a chat with an HMRC chat agent and I'm told that, for those of us who are VAT registered, we are treated as Intermediaries and, where we can establish that we act on a Business to Business basis ie we introduce new members to Wealthy Affiliate therefore we are businesses introducing customers to a business (us to WA) AND we can establish that the business we introduce to is abroad (USA/Canada), we therefore fall outside of the scope of VAT and we have no VAT to pay.
For those that are VAT registered, we still have to account for the amount we receive for our efforts here (and other commissions earned similarly elsewhere) on our returns, but there is no VAT to pay....happy days!
Point 11 of the following notice applies...
https://www.gov.uk/government/publications/vat-not...
Hope this helps out some of our UK based members!
Bye for now :-)
Mark
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Mark, purely out of laziness I haven't checked your link yet. But for those of us who are not VAT registered, do you know whether we should get registration in order to refer and get paid commissions?
And btw, thanks for the info, really useful. Giulia
Hi Giulia,
No, you don't need to be VAT registered purely to receive commissions from WA.
What I don't know of course is what other self employed activities you may be involved in or not. If you're not, then you won't need to be registered for VAT.
What you should be is registered as self employed with HMRC as any earnings you have from WA would be taxable (after allowances of course) and any expenditure you make in the course of your business would be allowable against your tax bill.
Hope that helps and good luck with your efforts here at WA, if I can help you with anything else don't be shy, drop me a line.
Mark