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VAT Registered In The UK - Question (10)

09-03-2013 02:30 PM #1 kai1 (Member)
VAT Registered In The UK - Question

So I got VAT registered a month or so ago and now I don't get charged VAT by Exoclick. It's good but does that mean I need to be giving my VAT number to affiliate networks and charging them VAT?

Anyone from the UK have experience dealing with VAT?

09-03-2013 03:36 PM #2 nick (Member)

If the affiliate network is registered in the UK then yes, you need to charge VAT. They will simply claim that back at a later date. You pay the VAT you have collected to the VAT man.

If the affiliate network is registered outside the UK, then they do not pay VAT on top of your earnings, so you just mark that revenue as being outside the scope of VAT.

For companies in the EU and outside the UK (such as Exoclick), you are right in saying that you don't have to pay VAT on your spend, but you do have to submit a quarterly EC Sales list to HMRC.

For companies that you buy ad space from in the UK (Admoda, Reporo, for example) you will pay VAT on your purchase and then just claim that back at the end of the quarter.

You can also claim VAT back on any business related purchases such as computers.

Give HMRC a call if you want to clarify though, as I've found them very helpful.

09-03-2013 03:57 PM #3 dynamicsoul (Member)

He's right ^.. Love that saying "the VAT man" lol

09-03-2013 04:00 PM #4 kai1 (Member)

Hey Nick,

Thanks for making things clearer for me. I did call up someone regarding VAT yesterday and they seemed to think I needn't have registered, but then I would get shafted by companies that charge me VAT.

As far as I can see, all of the affiliate networks I'm registered with are outside of the UK. I did think Clickdealer was UK based but was told today they are a BVI registered company. So does that mean I don't need to submit a VAT return?

"you do have to submit a quarterly EC Sales list to HMRC." - Do you do this yourself online?

Also, are you registered as Self Employed or Limited Company?

Cheers Nick!

09-03-2013 04:11 PM #5 kai1 (Member)

I have no clue what I need to do with this form

Click image for larger version.  Name: VAT return.jpg  Views: 47  Size: 13.4 KB  ID: 1251

09-03-2013 04:36 PM #6 nick (Member)

Quote Originally Posted by kai1 View Post
Hey Nick,

Thanks for making things clearer for me. I did call up someone regarding VAT yesterday and they seemed to think I needn't have registered, but then I would get shafted by companies that charge me VAT.

As far as I can see, all of the affiliate networks I'm registered with are outside of the UK. I did think Clickdealer was UK based but was told today they are a BVI registered company. So does that mean I don't need to submit a VAT return?

"you do have to submit a quarterly EC Sales list to HMRC." - Do you do this yourself online?

Also, are you registered as Self Employed or Limited Company?

Cheers Nick!
I spoke to HMRC regarding the BVI question, as I also work with ClickDealer. They are VAT exempt. It's worth noting that since ClickDealer moved to Cake (from HasOffers) they don't generate an invoice for you anymore, so all I do is create one myself and send it to their Finance department each Monday, covering the previous week's earnings, just so I have a record for the VAT man. I clearly show their BVI address on the invoice and not their UK office.

Yes - you can submit a EC Sales list online.

My Skype is 'nickmbailey' if you want to connect. I'm by no means a tax expert (disclaimer) but it's always useful to network with other UK affiliates.

09-03-2013 04:37 PM #7 nick (Member)

Quote Originally Posted by kai1 View Post
I have no clue what I need to do with this form

Click image for larger version.  Name: VAT return.jpg  Views: 47  Size: 13.4 KB  ID: 1251
The image is too small to make out what it is, but I assume it's the online VAT return. I use QuickBooks for my record keeping and it thankfully just tells you what figures to put in each box.

09-03-2013 05:09 PM #8 snipe (Member)

Might be worth your wild getting an accountant to handle all this. I only paid mine a grand or so per year (in conjunction with clearbooks) and it's a huge load of my mind.

Exoclick HQ is outside the UK but still in the EU, meaning the VAT is zero rated and you don't have to pay it. Or if you do end up getting charged any VAT, you can get it refunded. If you get paid from networks who have HQ in the EU, then you'll have to include them on your EC sales list.

09-03-2013 05:25 PM #9 kai1 (Member)

Cheers Nick, just added you on Skype You send a copy of the invoice to the HMRC every monday?

Not sure why the attachment came out tiny, but yeah it's a VAT return. So with QuickBooks, you can create and submit your tax returns rather than doing it on HMRCs website?

@snipe funnily enough I had a consultation with an accountant today. He didn't seem very clued up on affiliate marketing but I am tempted on getting one. I'm not earning that much to be honest but it is a headache to have to deal with all this.

09-03-2013 06:13 PM #10 nick (Member)

Quote Originally Posted by kai1 View Post
Cheers Nick, just added you on Skype You send a copy of the invoice to the HMRC every monday?
No, I send an invoice to ClickDealer each Monday, just so they can confirm my records match with theirs, and for a trail in case I get audited for VAT. I've only done one VAT return online so far, and it didn't ask for any supporting documentation (invoices/receipts), but you legally have to keep them for a number of years (can't remember how long).

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