Adwords, Microsoft Adcenter And VAT Registration
Do you need to register for VAT?
To find out whether you need to be VAT registered you need to calculate your VATable supplies each month and compare the total for the last 12 months with the VAT registration threshold.
For this calculation, non UK advertising expenditure such as Google Adwords and Microsoft Adcenter should be added onto your turnover in working out your VATable supplies.
This is because, for VAT purposes, advertising from non UK suppliers comes under the Reverse Charge rules, and VAT is accounted for by the recipient of the services (i.e. the customer) in their VAT return.
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Popularity: 35%
Flat Rate VAT For Affiliate Marketing
Using the UK flat rate VAT scheme is quite often beneficial for affiliate marketeers. Many in the affiliate marketing sector have low overheads and in particular small amounts of input tax (VAT charged on purchases).
Under the flat rate scheme, input tax is not reclaimable and the VAT paid to HMRC is calculated as a percentage of gross sales. Gross sales are net sales + the VAT charged to the networks.
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Popularity: 18%
UK VAT Flat Rate Changes January 2010
The Standard rate of VAT changes back to 17.5% with effect from Friday 1 January 2010.
Changes to the flat rate scheme percentages
Alongside the changes to the Standard rate, the flat rate percentages for many trade sectors change and for some sectors they are not the same rates as they were using up to 30 November 2008.
If your VAT return period does not end on 31 December 2009, you will have to work out your gross sales for pre and post 1 January and apply the appropriate flat rate percentage to each.
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Popularity: 24%
Flat rate VAT scheme
Is the VAT flat rate scheme right for you?
Whether or not the VAT flat rate scheme is beneficial for you would depend upon the administration costs saving due to its simplicity weighed against the fact that in most circumstances, input VAT cannot be reclaimed.
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Popularity: 14%
