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AFAIK in US, you just treat affiliates like independent contractors. You collect W9 or W8-BEN, and there's no tax withholding or extra taxes. Most importantly m
by yangustin 6y ago
AFAIK in US, you just treat affiliates like independent contractors. You collect W9 or W8-BEN, and there's no tax withholding or extra taxes. Most importantly most software help you automate admin workflow.
>And is EU law the issue or really 'local law'?
A little bit of both. Basically different nationalities have different tax calculations and documentation required. Plus, there are extra taxes that'll eat up our margin significantly.
We are consulting professionals of course, just want to get some tips from those who might've dealt with it. (I'm also slightly worried that tax/legal professionals, especially outside of SV, don't always have full grasps of these practices.)
- mytailorisrich 6y agoHmm, in the EU, at least depending on the country, you treat an affiliate as an independent service provider and have zero paperwork. A bit like hiring a plumber or lawyer. Uber, Deliveroo, and co. tried that one on their drivers. I think you really need to get professional advice. You will also probably want legal advice on the drafting of you affiliate program's T&Cs. Edit: Affiliates are a very old practice and one does not need to be in 'SV' to grasp how it works for tax and accounting.