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Affiliate programs and tax...

by Vladutz
14 replies
Hey,

If you run your own affiliate program do you have to take tax details of people and sort all the tax out or can you just pay affiliates and let them sort out their own tax while you just worry about paying your tax?

Hope that makes sense...thanks. :0)
#affiliate #programs #tax
  • Profile picture of the author michaelmbrown
    Originally Posted by vladmm View Post

    Hey,

    If you run your own affiliate program do you have to take tax details of people and sort all the tax out or can you just pay affiliates and let them sort out their own tax while you just worry about paying your tax?

    Hope that makes sense...thanks. :0)
    Where do you run that affiliate program? In Romania? You may wanna ask the guys from 2Parale.ro. I don't know them, never worked with them, but maybe you can find somebody nice to tell you that kind of stuff. And if you find out let me know too
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    • Profile picture of the author Jungle123
      I run everything in UK and newer paid any taxes....! If i will strat to do so...i will be bancrupt immidiately!
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      • Profile picture of the author Vladutz
        I'm only currently in Romania...But my business will be in the UK. I want to start my own affiliate program but just was wondering about the tax implications.
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  • Profile picture of the author Istvan Horvath
    It would be beneficial if you clarify WHAT KIND of taxes are you talking about?

    There are 'sales tax' types (like your TVA; VAT in other languages) - those should be collected by the seller where the law says so... and forwarded to the treasury

    and there are 'income taxes' paid by individuals on their personal earnings.

    P.S. Never ask tax and legal advice in a public international forum. They are all wrong
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  • Profile picture of the author Vladutz
    Hey Istvan Horvath,

    Sorry I know its not a good ideas to ask in a forum about tax but I couldn't help myself.

    I have no idea with tax. I was was just wondering what the implications were. I know I would obviously pay my income tax and the affiliates would pay theirs but I wasn't sure about any other taxes like what you mentionet (TVA or VAT).

    I we sell info products and lets say its $97 do we have to keep lets say 20% for TVA or VAT and then also pay income tax on all our earnings? Seems like there would be much left of that $97.

    I know this all probably sounds silly to those who know more about tax but I really havn't got a clue about it.

    Anyway thanx
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  • Profile picture of the author Istvan Horvath
    You really should consult a lawyer and/or accountant.

    When you sell a physical product in places like EU (where you are) you MUST add the TVA to your price. On top of it! For the sake of easy numbers: if your price is $100 and the VAT/TVA in your country is 20% then your buyer pays you $120.

    As a business you need to have a TVA number/registration and periodically, as prescribed by the law, you "forward" the 20% TVA you collected to the taxman. All that stuff has to be carefully documented... that's why you need a pro for accounting.
    You keep what was your price and send in the TVA you collected.

    With digital products (as a downloadable ebook) the rules might be different from country to country... sometimes from state to state in the case of US, for example.
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  • Profile picture of the author Vladutz
    Thanx Istvan very much.

    Can I just ask if you don't mind...Is your name Hungarian by any chance?

    Sorry if i'm wrong.

    :0)
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    • Profile picture of the author Istvan Horvath
      Originally Posted by vladmm View Post

      Can I just ask if you don't mind...Is your name Hungarian by any chance?
      Da

      I am a Hungarian-speaking Transylvanian - if you wanted a precise definition.

      Horváth István
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  • Profile picture of the author Vladutz


    Wow what a small world. I'm in Romania at the moment at my Grandparents. In Oradea to be precise where there are many Hungarians and Romanians alike.
    Its a pleasure to meet you, even if over the web. Where abouts from Transylvanian are you from?
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    • Profile picture of the author Istvan Horvath
      Originally Posted by vladmm View Post

      Where abouts from Transylvania are you from?
      Testing your language skills, LOL
      - Klausenburg or Kolozsvár
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  • Profile picture of the author Vladutz
    I'm improving my Romanian language at the mo because I left when I was very small. Unfortunaly my Hungarian is even worse but my grandmother is always teaching me little bits.

    So your from Cluj, not too far from where I am at the mo ;0)

    Anyway I best go do some work. Larevedere Noapte Buna
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    • Profile picture of the author Cluj
      Buna,

      István and Vlad

      My name is Richard and I live near Boston Massachusetts, USA.

      I had the opportunity to travel to and live in Romania for a period of time.

      I lived and worked just outside the small village of Nusfalau, in the county of Salaj and the province of Transylvania. I had the good fortune to travel about and made many friends. I wish to return someday?

      Maybe someday, after I make lot's of money as an IM I will travel once again to Romania and Hungary. I was fascinated with the people and the culture.

      Best regards,

      Mr. Richard

      That's what my Romainian friends called me

      PS: I have a friend that lives in Cluj, how I came to using the name as my username :confused: I guess I miss my friend
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  • Profile picture of the author Vladutz
    I'm glad you had such a great impression of our countries and I hope you find your way back real soon so you can experience more of the great culture. I myself come from Oradea wich is in western Romania, right next to Hungary and there are many Hungarians and Romanian's here. A good mix, and in fact my Grandma is Hungarian.

    Cluj is also quite close to here, only about 150 KM if that.

    Mr. Richard I wish you the best of luck for the future.
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  • Profile picture of the author roley
    Originally Posted by vladmm View Post

    Hey,

    If you run your own affiliate program do you have to take tax details of people and sort all the tax out or can you just pay affiliates and let them sort out their own tax while you just worry about paying your tax?

    Hope that makes sense...thanks. :0)
    That is just classed as an expense of yours. meaning you pay your affiliates ( regular no tax added ) and then at the end of the year tally up your income and expenses, listing affiliates as an expense for basically working for you.
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