Do affiliates that work with EU operators sign up for VAT?

[ambergambler]

I am UK based where the VAT threshold is about 80K GBP, and anything below that does not require registering for VAT. But I saw on the Mr Green affiliate T&C that they may demand a VAT number at any time. Of course, many operators are based in Malta (EU), which has a lower VAT threshold (10K Euros) so I wonder how many of you who work with Malta operators bother with the VAT aspect.

Thanks and sorry for all the newbie questions.

[baldidiot]

If you're UK based all you need to pay attention to is the UK threshold. And that's based on VAT'able revenue only - so if you made £100k and half (£50k) was VATable you wouldn't need to register.

Only other thing to be aware of is reverse charge such as Adwords. Here your adwords spend is included in your VAT threshold. So if you made £10k but spent £70k on adwords, you'd need to register for VAT.

As an affiliate if you do register it's best to go flat rate as your costs should be very low.

[as far as I know / not tax advice / speak to an accountant]

[ambergambler]

Wow thanks baldidiot for the comprehensive reply.

[Syndicate]

Malta has no VAT on betting and gaming related business --- but you will still need a VAT number. The other side is you cannot reclaim VAT on any services you might buy in!

[ambergambler]

Malta has no VAT on betting and gaming related business --- but you will still need a VAT number. The other side is you cannot reclaim VAT on any services you might buy in!

That's interesting, so does that mean that when an affiliate gets paid by a Maltese registered operators, there is no VAT paid at all?

[Syndicate]

Well, if the EU registered company had a VAT number they would be freed in any case. If they come from outside the EU no sales tax/Vat would apply. Vat would only apply B2C which affiliates don't have. Nevertheless, gaming associated companies in Malta(stretches to all branches) are VAT free, so they neither charge or claim.

I remember a case were one of the Bookmakers/casino operators were i'm a shareholder was wrongfully freeing itself from paying VAT on invoices software/hardware/suppliers - it was just an administration failure!

In any case, VAT shouldn't be an issue for gaming operators or Affiliates!

I'm personally not a great fan of Malta, but that comes with the irony that i've set up 40-50 companies there. What i don't like is how Malta are basically screwing the rest of the EU with favourable tax breaks, because in my opinion they are simply abusing their ''extra'' rights - but that's another story!

That's interesting, so does that mean that when an affiliate gets paid by a Maltese registered operators, there is no VAT paid at all?

[ambergambler]

Well, if the EU registered company had a VAT number they would be freed in any case. If they come from outside the EU no sales tax/Vat would apply. Vat would only apply B2C which affiliates don't have. Nevertheless, gaming associated companies in Malta(stretches to all branches) are VAT free, so they neither charge or claim.

I remember a case were one of the Bookmakers/casino operators were i'm a shareholder was wrongfully freeing itself from paying VAT on invoices software/hardware/suppliers - it was just an administration failure!

In any case, VAT shouldn't be an issue for gaming operators or Affiliates!

I'm personally not a great fan of Malta, but that comes with the irony that i've set up 40-50 companies there. What i don't like is how Malta are basically screwing the rest of the EU with favourable tax breaks, because in my opinion they are simply abusing their ''extra'' rights - but that's another story!

You are right, since affiliates are B2B no VAT applies in any case.

I wonder why in Mr Green Affiliate T&C they reserve the right to ask for a VAT number? Weird.

http://www.mraffiliate.com/tac-2-0/

[ambergambler]

I just realized, Mr Green will want the VAT number to ensure that the transaction is B2B and therefore VAT-exempt.

Good reasons I suppose to become VAT-registered.

[justbookies]

Malta has no VAT on betting and gaming related business --- but you will still need a VAT number. The other side is you cannot reclaim VAT on any services you might buy in!

Malta is "reverse charge" - they are part of the EU VAT system. Obviously betting itself is not VAT'able! But the affiliate / marketing earnings are (assuming you are VAT registered). With reverse charge it has the net effect of no VAT, but it does need to appear on your VAT form (both sides of it, so one entry effectively cancels out the other - that is how reverse charge works).

What you need to remember is you are billing them for the work you have done (maybe not really, but that is direction the theoretical invoice goes). So if you are not VAT registered then it just does not matter at all. Don't even think about it. If you are VAT registered then it becomes reverse charge re: Malta (in theory you charge them VAT and reclaim it at the same time, so it nets out to be nothing - as if VAT never applied).

[justbookies]

I just realized, Mr Green will want the VAT number to ensure that the transaction is B2B and therefore VAT-exempt.

Good reasons I suppose to become VAT-registered.

This makes no sense. They will not pay VAT to anyone who is not VAT registered. It would be criminal for you to charge them VAT when you are not VAT registered. I have never dealt with Mr Green, but I would suggest that what you are reading only applies to VAT registered affiliates and if you are not VAT registered then it can be ignored.
(By the way there is some major misinformation on this thread, especially with regards Malta!)

[RacingJim]

Which sports bookies are based in Malta? As far as I know most are in Gibraltar?

I had to register for VAT when 365 were still in the UK, but now it's rendered it a bit irrelevant as they've gone to Gib with their sports stuff and they already had their gaming stuff there.

The only UK ones I can see for VAT purposes are Sky Bet and Paddy Power (Sports).

[justbookies]

Which sports bookies are based in Malta? As far as I know most are in Gibraltar?

Unibet is the only one I have had to deal with. They told me VAT does not apply, but when I last checked they were Malta VAT registered and it is a reverse charge situation (so does net out to no financial difference), which if I recall is correctly reflected on their invoices generated within netrefer. Understandably affiliate managers have limited knowledge of the fairly complex EU VAT system, but as you say, most firms are 'outside scope' which makes it straightforward.

[Syndicate]

List of gaming operators with Malta License

http://www.mga.org.mt/gaming-sectors...sed-operators/

Class two = bookmakers

Gibraltar have far less by number, but more quality since they only accept sizeable operators.

Which sports bookies are based in Malta? As far as I know most are in Gibraltar?

I had to register for VAT when 365 were still in the UK, but now it's rendered it a bit irrelevant as they've gone to Gib with their sports stuff and they already had their gaming stuff there.

The only UK ones I can see for VAT purposes are Sky Bet and Paddy Power (Sports).