Invoice and VAT?

danniee

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So I have set up my own company (Sole proprietorship) and from my understanding (correct me if I'm wrong) I need to create invoices and save for future reference when declaring tax?

Now, most affiliate programs don't need invoices and they will automatically pay commission to the bank account. What annoys me a bit is that I have to chase down aff managers and bug them about company info and VAT to put on my invoices. Some of them seem a bit confused and some don't even know the VAT so I'm starting to think this is not normal procedure?

I'm based in northern Europe (EU) by the way if that makes any difference.
 

danniee

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Hello and thank you for the reply! It's a bit on a pain for sure, but I really want to get this right.

I just realized that I can log into the affiliate account and export an invoice so that is probably how most affiliates do it?

EDIT: and now I see that some do not offer the option to export invoices. Very complicated and confusing.
 
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bettingappguide

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Hello and thank you for the reply! It's a bit on a pain for sure, but I really want to get this right. I just realized that I can log into the affiliate account and export an invoice so that is probably how most affiliates do it?
Yes but not all will show VAT on, some you have to invoice by yourself and add the VAT on.

There is quite a bit about this too over on gpwa forum as well
 

danniee

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I've been searching for a while now and haven't really been able to find what I'm looking for. Was hoping for someone with a bit more experience to chip in.

But I guess in some programs you can generate invoices automatically where all info will be available, and in others you can't. I noticed some programs have enabled "export invoice" in NetRefer while some have not. A bit confusing.
 

Biti

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Reverse-charging VAT if you invoice within the EU, but now within your own country. For example Malta. That means 0% VAT, add on the invoice that reverse-charging applies and file it they way your tax authority wants it.

Invoices outside the EU are without VAT. Invoices within your own country are with VAT.

Most programs do this automatically.

In every case, make sure you're having the correct company details of the companies you invoice.
 

Thomas Andreas

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Just to add a bit to Biti's well explained reply.
#1 If you ARE a Swedish VAT payer and the company is a VAT payer - you will ADD VAT to the total amount. so if the commission is 100 SEK you will add the VAT. so 100 + VAT
#2 If you are NOT a Swedish VAT payer but the company is a VAT payer. - You will NOT add VAT to the bill. so it will simply be 100 SEK
however, in both cases, yes you have to chase the companies down as you should include the VAT number inside the invoice.
 

awesamko

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Since you are creating sales invoices, you are adding VAT number. You don't even need to send it to managers if programs do not require an invoice. Two important things:
1. You don't have to add VAT while making invoices to certain countries.
2. When you will add VAT - it is important that casino will pay you the gross amount.
 

danniee

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Does anyone know what to do when an affiliate program does not send you company info and VAT? Yes, I have ran into crap programs that are impossible to get in touch with. I need this info to declare to the tax authority but what to do if I dont have the info? :/
 

Biti

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I would choose for the safest option and that is invoicing them as them being an individual person and charing vat.

For example, if you're receiving € 1.000 and VAT is 18%, invoice them € 847.45 and € 152,55 VAT.

Which program is it?
 

danniee

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Thank you Biti, will follow your advice.
 
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I am bumping this thread since I saw the mr danniee said there's a function in Netrefer to export invoices. How, where?
 

Thomas Andreas

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Does anyone know what to do when an affiliate program does not send you company info and VAT? Yes, I have ran into crap programs that are impossible to get in touch with. I need this info to declare to the tax authority but what to do if I dont have the info? :/

you need to have this info. sadly, the tax authorities will not find this to be an acceptable excuse.
 

aggerd

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best advice, always ask in front before starting with a program for the needed information. at that moment they might still be willing to help out by providing information.
if it's a program in europe, and you have their address AND vat number and you're also in europe, you can probably do a vat reverse charge 0%. hire somebody to help you out with your administration, it's worth it
 

justbookies

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1) For a start, YOU invoice them (they don't provide your invoice for you - self-invoicing is an exception to this but rare). In reality you do not need to invoice them because they pay you without it. I only invoice a couple of companies who request one. On my accounting software there is an invoice created for every payment received but it never gets printed. It's just for my accounts.
2) Very, very few companies are liable to VAT in this business. They all operate out of a) channel islands, b) gibraltar or c) outside of EU. All those places are 'outside scope' of VAT. They are not in EU VAT system. Malta companies are often part of EU VAT system, but it is 'reverse charge' for VAT, so it actually does not end up with any charge, it nets out to zero vat (unless you are based in Malta).
3) Only companies in your EU country will actually pay you VAT, if they are registered for VAT and you are registered for VAT. If there are any operating from your EU country, I bet they are running their betting operation out of one of the locations in point 2) anyway. In this business, there will be very few or none who will actually be paying you VAT. For example, I am in UK yet all UK businesses operate out of one of the locations in point 2) nowadays, so they are 'outside scope' for VAT. It just does not apply.
4) Companies that are within EU VAT system that I know about: Paddy Power / Betfair are based out of Ireland (reverse charge applies unless you are in Ireland); Unibet will be in UK in a couple of months (reverse charge will then apply unless you are in UK).
5) Of course affiliate managers are confused, because 99% of them work for companies operating from regions outside of the EU VAT system.
6) This info only applies if you are VAT registered. If you are not, then none of this should bother you.

Read this post and believe it. There's some nonsense written in other posts!
 
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bettingappguide

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1) For a start, YOU invoice them (they don't provide your invoice for you - self-invoicing is an exception to this but rare). In reality you do not need to invoice them because they pay you without it. I only invoice a couple of companies who request one. On my accounting software there is an invoice created for every payment received but it never gets printed. It's just for my accounts.
2) Very, very few companies are liable to VAT in this business. They all operate out of a) channel islands, b) gibraltar or c) outside of EU. All those places are 'outside scope' of VAT. They are not in EU VAT system. Malta companies are often part of EU VAT system, but it is 'reverse charge' for VAT, so it actually does not end up with any charge, it nets out to zero vat (unless you are based in Malta).
3) Only companies in your EU country will actually pay you VAT, if they are registered for VAT and you are registered for VAT. If there are any operating from your EU country, I bet they are running their betting operation out of one of the locations in point 2) anyway. In this business, there will be very few or none who will actually be paying you VAT. For example, I am in UK yet all UK businesses operate out of one of the locations in point 2) nowadays, so they are 'outside scope' for VAT. It just does not apply.
4) Companies that are within EU VAT system that I know about: Paddy Power / Betfair are based out of Ireland (reverse charge applies unless you are in Ireland); Unibet will be in UK in a couple of months (reverse charge will then apply unless you are in UK).
5) Of course affiliate managers are confused, because 99% of them work for companies operating from regions outside of the EU VAT system.
6) This info only applies if you are VAT registered. If you are not, then none of this should bother you.

Read this post and believe it. There's some nonsense written in other posts!
I remember first trying to get my head around this 6 years ago, wasnt the easiest to digest
 
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