How do european webmasters handle VAT???
 

I got visited by a tax auditor yesterday, and he told me that it might be possible that I have to pay VAT (18%) for all my income since it´s commission-based (revshare and per signup sponsors), plus income tax (~32%) that I pay anyway. Since most of my income comes from payed advertising that would mean if I invest e.g. $5000 for advertising and make back about $6300, I´d have to pay $1134 VAT and ~$416 income tax!

I don´t have a problem with income tax, but if I´d have to pay VAT too for every sale I make on a sponsors site, I´d end up with a monthly taxation of nearly 90%.

So I´d like to know how other EU-webmasters handle their taxes, especially VAT??? thx

Bump

Bullshit. If you are paid by US companies, then what you are doing is EXPORT of services, which is non-VATable.
XM

I've taken a look into this and it seems as if you're right, that tax auditor must have been a complete idiot for not knowing that, cause I've told him that I only do business in/with the US of A. That inbreeding retard scared the hell outa me:feels-hot

Thx for your help, I´ll pay you a drink if we meet some day :thumbsup

That is not true.

There are new rules since july this year.
If a company sells a product or service to a member of the European Union they have to pay VAT.
This VAT payment should be handled by billing processor. Most don't do it so far so they, the sponsor or you could get in trouble.
If you for example visit a site that uses clickbank for their billing you'll see they'll add the VAT automaticly to the amount you have to pay if you are from the UE.

Try this page:
http://www.clickbank.net/order/0.cgi...48&t=FreeCampA

Select The Netherlands and as zipcode use 5555 AA
You'll see they add taxes.

SR you just wrote what I did. Of course you have to add VAT when selling stuff to EU member, it's not export anymore. But this is problem of sponsor and processor only. As for affiliate commission I am paid by sponsor who is located in US, I am selling the service to him, I am exporting stuff to him, he takes care about memberships etc, I am not selling service to particular member of paysite, he doesn't pay me nor his payments are processed by me. Being paysite over the situation would be exactly as you stated.
XM

we just been to our accountant today and been talking about this exact thing, of couse I knew it had came in and I think it does effect us webmasters.

My accountant is talking with specialists and government to get a definite answer, the aqnswer will be in written form so we can put it in our records to cover ourselves.

Whatever you do, do NOT take someones word on GFY as advice thats just plain stupid... When ur audited everything needs to be in check.

will keep u informed.

If you only promote sponsors and not your own service/product I think you are right but the Tax people might say it's your responsibility to work with a sponsor/company that follows the rules.

since your business and income sources are not based in the country you live in, you shouldn't pay any taxes for that.

unless you are a citizen of UK or US where all incomes are taxed =)


taxes are not for us, anyway.

Even USA webmasters now have to charge VAT for all their european customers.