CJ.com VAT number? :s

9 replies
Hi, I'm confused about VAT numbers. I called CJ by phone but they can't advise on this (for legal reasons).

I registered as a publisher (this is the option for affiliate marketer, right?)

1. As an affiliate marketer, I don't have a business, so why or how can I require a VAT number either?

2. I'm from UK, promoting products for US customers, but will be using web hosting and outsourcing solutions which may be located in US, do I need to select a specific option for this?

This is a wierd question I didn't expect. So apologies if this may seem mundane, typical or obvious
#cjcom #number #vat
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  • Profile picture of the author webgranth
    Banned
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    • Profile picture of the author Mullguy
      Hi Heevyhivy,

      I'm confused too. Who is it that's asking you to provide a VAT number, CJ?

      Quote "As an affiliate marketer, I don't have a business, so why or how can I require a VAT number either?"

      If you are an affiliate marketer then that's incorrect, you do have a business, as an affiliate marketer. However, you would only be required to register for VAT purposes if your turnover or anticipated turnover were to reach a certain threshold in a calendar year, currently £73,000.

      The only thing you will be required to submit to CJ is a W8-Ben which will exempt you from paying US tax as you will be paying tax here, in the UK.

      I hope this helps, good luck with your marketing.
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      • Profile picture of the author heevyhivy
        Originally Posted by Mullguy View Post

        The only thing you will be required to submit to CJ is a W8-Ben which will exempt you from paying US tax as you will be paying tax here, in the UK.
        Okay, so I fill out that form as sole proprietor, to get tax of 30% of my CJ income. Btw, since this income has been taxed by USA's W8-Ben system, is it still taxable by Great Britain (via HRMC)?
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  • Profile picture of the author heevyhivy
    Does anyone know what the phrase: "Exempt from back-up withholding" in the W8-BEN form means?
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    • Profile picture of the author JMSD
      Originally Posted by heevyhivy View Post

      Does anyone know what the phrase: "Exempt from back-up withholding" in the W8-BEN form means?
      VAT - leave the box for VAT info blank - unless you are registered for VAT and you have your VAT number from Her Magesty's Revenue and Customs, this section of CJ's form does not apply.

      Incidentally, you don't have to be a limited company to apply to be registered for VAT. Once your turnover reaches the current threshhold, you will HAVE to register for VAT - as sole trader (proprietor) or incorporated company, whether you wish to or not.

      US Tax Withholding - US companies are required by law to withhold 30% tax from non-US individuals, proprietors and companies unless they complete a W-8BEN form and provide an EIN (Employer Identification Number) or TIN (Tax Identification Number) to exempt them from a double wammy (tax in the UK AND the US).

      You get one or other of those numbers from the US IRS. EIN is for proprietors and limited companies and TIN is for individuals.

      Here's what you do to get your number within minutes and on the telephone (it's free):

      1- Download a W-8BEN form from the IRS site - it's a pdf. Print it off
      2 - Complete it - its very simple (barely half a dozen brief entries). As a sole trader, proprietor, you'll need an EIN (employer Identification Number). As someone pointed out, you are running an affiliate business
      3 - Then ring up the IRS (contact details on their site for non-US enquiries).
      4 - Tell the very helpful person who answers the call that you are based in the UK and wish to apply for an EIN to avoid tax withholding from US companies to which you are affiliated
      5 - They'll ask you a few questions - the answers will be on your completed form.
      6 - Seconds later, they'll give you an EIN while you wait.
      7 - Make a note of it on the completed W-8BEN form - (you'll also get a mailed letter with the number within two weeks)
      8 - Now login to your CJ account and enter the EIN into the appropriate box

      You can use this EIN for each and every affiliate network where they request the information - don't send or give your EIN to anyone unless they are reputable companies (after all, you wouldn't dish out your NI number to all and sundry). If you have more than one limited company, you'd need a separate EIN number for each company.

      One or two networks may well ask you to post or fax the completed and signed W-8BEN form to them. Each network will need a separate W-8BEN form for their records.

      Clickbank leaves the responsibility of your taxes to you so no US taxes will be deducted (withheld) before you receive your affiliate commissions.

      Hope this helps to clarify the matter.

      James
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      • Profile picture of the author heevyhivy
        Okay, thanks, but I see that there is a W-8BEN form on the CJ.com website, if I fill it out will I still need to contact IRS?
        (CJ's form allows me to keep alot of fields blank and doesn't require a photographic signature)
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        • Profile picture of the author Mullguy
          No, you won't need to contact the IRS. CJ will forward that form to them which simply means you will not be taxed twice on your earnings (Once in the US & again in the UK).

          If you're in the early days of your marketing career then an accountant would be a waste of money but I would strongly advise you to seek counsel from one of the small business gateways or a Chamber Of Commerce in the UK.

          All the best.
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        • Profile picture of the author JMSD
          Originally Posted by heevyhivy View Post

          Okay, thanks, but I see that there is a W-8BEN form on the CJ.com website, if I fill it out will I still need to contact IRS?
          (CJ's form allows me to keep alot of fields blank and doesn't require a photographic signature)
          I filled my CJ form some time ago so I'd forgotten that they have that on site. By all means complete what's there but you'd still need the EIN. .

          It would take you less than 15 minutes to ring the IRS and get your number which you can then input in CJ's W-8BEN form and have on your records to use with other networks.

          I have never let any network apply for an EIN on my behalf so cannot comment on the procedure, even if it exists.

          James
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  • Profile picture of the author KirkMcD
    It means that they will not be withholding any taxes.
    If you fill out the w-8 properly, they will NOT be withholding taxes, so your post just above is wrong.
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