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VAT for Commission based U.S. Marketplace

We're a U.S. startup operating an online marketplace where gamers make affiliate sales for games

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After a successful initial launch, we are polishing up our site and officially launching soon. Unfortunately, we haven't focused on VAT tax handling and could use some help.

On our website, individuals on YouTube and Twitch can make affiliate game sales from games on our store. The games on our store are headquartered all over the world, as are the affiliates.

When someone purchases a game key from our site, we handle a direct charge for the game publisher and take a 20% commission. We then send the affiliates half of that 20% once a month.

We are very new to VAT compliance and with many of our end customers being in the UK, we want to make sure we get it right. So in regards to digital distribution (a game key in this instance), do we need to apply VAT to just the commission we take and then provide monthly/quarterly VAT reporting information to the game publishers? 

Also, we apologize for the vague question. If anyone has any helpful links to guides on how to register for MOSS, accountants that are great with this specific subject, or software solutions we can use to automatically have VAT compliance ontop of our Stripe stack (we've been looking at Octobat), we would be very very grateful.

Cheers

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02nd Nov 2018 22:06

new_tribunal wrote:

After a successful initial launch, we are polishing up our site and officially launching soon. Unfortunately, we haven't focused on VAT tax handling and could use some help.

You need to speak to an accountant. This is not a forum for people seeking business-critical tax advice for free.

https://find.icaew.com/

Are you getting your US tax advice for free?

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