Do US sponsors pay VAT charges?
 

Do they have to pay VAT charges when they pay commissions to European webmasters?

No. They don't.

we stopped paying taxes to the crown more than 200 years ago.

web4x:

VAT is a UK or EU sales tax. If the sale is not completed within the UK/EU, there are not VAT charges due.

Else we would all be paying stuff like the local sales tax in Texas :)

web4x:

Now that you mention this. The idea of VAT was that it replaces income taxes.

It was introduced in the early 70's and folks have been paying this for 30 years. Anyone said when they are going to abolish income taxes yet????:Graucho

Wrong! US companies have to charge EU VAT for e-sales made to within Europe. Actually doing it is something else...

But, on comissions, there's no VAT to be paid since it's work derived, not sales derived. Sort of like a paycheck. There's a difference between the two :)

Correct and until the payment processors actually do something about this then non of the adult affiliate programs will do.

Keep an eye out for a ban on ecommerce porn transactions across Europe within the next 2-3 years unless something changes so far as US based companies paying their required VAT.