UK Warriors - Receiving payments from abroad.

[jhrdesigns]

Newbie Affiliate Marketer and SEO Consultant.

I am busy setting my company up in the UK, can anyone help me to identify percentage of payments I receive will be from non-UK companies?

e.g. Google Adsense Revenue is it paid from US or Ireland (EU)
Clickbank I am sure is from US,
CJ.com not sure?
paypal from UK,

I am trying to work this information out to obtain whether the company should be VAT registered in the UK and if so whether to be on the Flat Rate Scheme.

Any advice from fellow warriors would be appreciated.

Yes I have an accountant but he needs to know what percentage of my income is going to be from none UK companies.

Thanks

JHR Designs

[n7 Studios]

Google Adsense is being paid in UK sterling.

[dddougal]

I dont see how anybody can answer this except you, surely only you knows which companies you are pushing....What a strange question

[jhrdesigns]

I am simply trying to clarify which companies pay from outside uk.

I have named the main ones I am dealing with.

I don't expect anybody to tell me, was just after advice as to where the payments come from in respect to the companies listed.

[jhrdesigns]

Originally Posted by n7 Studios

Google Adsense is being paid in UK sterling.

Thanks for that N7 Studios

Does that mean its paid from the UK then.

[pearsonbrown]

Not a strange question at all. VAT has caused endless confusion on this forum for the last few years.

Clickbank is an American company. It buys your product off you and then resells it. So all your sales are considered to take place in the US and so there is no VAT.

Adsense is also based in the US, even though they transfer funds in sterling if you ask for it, and so there is no VAT.

I don't know much about CJ but I think it's the same.

Paypal is another question entirely. Tell your accountant that EU rules for online sales differ from normal VAT rules on exports. The sale is considered to take place in the country of the purchaser and not that of the seller. So if you sell a product online to somebody in France, you should charge French VAT and not UK VAT. However, this only applies when your turnover is quite substantial. Most Warriors can just ignore VAT.


Pearson

[competitive]

With Clickbank, when you are from the UK, they collect vat on your product and send the payments directly to the Vat office. This under the European Vat directive and is a smaller percentage than you would charge if you were Vat registered. So with Clickbank products you do not need to worry about the Vat.

[AndyBlackSEO]

Unless your online business is already earning above a set threshold you do not need to be VAT registered.

[Martin.Avis]

You will get all kinds of conflicting advice about VAT and whether you even need to register at all!

The big trouble is that most accountants don't understand Internet marketing and have never even come across PayPal, let alone the other places we get money through.

The even bigger problem is the VAT office are terrified of making categoric statements because they themselves don't really know the answers.

For example, when I passed the VAT turnover threshold I expected to register for VAT, but my accountant (who is an ex tax officer herself) thought that as such a large percentage of my turnover is non-EU based, I wouldn't have to register until my EU income was sizable enough.

Because even she admitted that that was questionable advice, she sought clarification from the VAT office. Three months later the reply came back that they weren't prepared to make a ruling on the case because the answer was already to be found in their advisory booklet.

However, the section of the booklet that they referenced was completely irrelelvent to my case and shed no light on the matter at all. When this was pointed out to the VAT official the reply was that they considered the question had been answered and they were not prepared to pass any further judgement.

The fact is that even if I were to be VAT registered, so little of what I sell is vatable that they would probably end up owing me money, so it is a moot point.

My entire point is don't second guess VAT. Get your accountant to work with the VAT office to see where you stand - but don't expect a clear answer even then!

Martin

[jhrdesigns]

Thanks very much for all your replies.

Very interseting story Martin.Avis, so not even the tax office could sort you out.

I was only thinking about VAT registartion for my UK website design and SEO business, thought it might be expected by business I work for.

Thanks Again

JHR

[jhrdesigns]

Sorry to ask guys but how do I thankyou personally for your eforts on this Forum, can see it being done on the other questions but cannot see the options for me to thankyou.
Cheers

JHR

Ignore this guys I guess the feature appears once yo have 5 posts or more.

[jhrdesigns]

Originally Posted by AndyBlackSEO

Unless your online business is already earning above a set threshold you do not need to be VAT registered.

The current threshold is £68,000 but there does seem to be some confusion as to payments recieved from abroad, escpecially on the Flat Rate Scheme.

Thanks for your Help

JHR