Am I Liable For VAT with Affiliate Marketing

[PBJames]

Hi guys new to the forum so apologise if this question is not in the appropriate section.
Right straight to the point basically I am in the process of setting up an online marketing business:

 I will be mainly affiliate marketing online and selling online downloads.

 I’m targeting the international market and advertising products in U.S. dollars so im unsure how or if VAT is applied and also any affiliate commissions I receive will be paid in dollars via paypal.

Questions:

If I am being paid all of my income in dollars from a third party american company whats my VAT implication?

Also how would I setup my company to reduce the amount of VAT I pay or if possibly (legally) avoid adding VAT to my own products – as the majority of my customers will be from the U.S.A.

Thanks

 

[Alpha]

Affiliate Marketing

Firstly if you are not currently vat registered and the affiliate network(s) you are dealing with are based in the US then there is no vat charged.

If you are vat registered then this sale would be outside the scope of vat anyway so you will still not be charged vat on the income (There may however be a US sales tax apllied which would be deducted from your income before the affiliate pays the money over)

In affiliate marketing the product is irrelevant (It is supplied by someone else). Your income straem will be from commissions earnt from affiliate networks.

Regarding sale of online downloads.

Again if you are not vat registered then no vat chargeable anyway.

If vat registered then it will depend on where your client is based (the purchasor of the download) as vat is charged based upon where the user is based (So if in the US then again outside the scope of vat).