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ebook VAT confusion

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townhaus

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Im looking to promote other peoples ebooks on my online. im based in the UK where VAT on ebooks is 20% (although get this...VAT on physical books is 0%😕)

Lets say:
If i have a button which is an affiliate link for an american ebook seller, and the price was $100 with 50% commision, id earn $50 per referral (excluding process fees), am i right?

But if they dont have an affiliate program and i want to sell the product directly and pass on the rest after taking the cut, id have to pay 20% vat and so id only be left with ~$30 (or we could both agree ~$40 but neither of us would be too pleased)

This difference in magins could be the difference between a profitable and an unprofitable ad campaign.

It seems a bit absurd:coco: how theres a big difference between the two scenarios:
my simple website
ebook $100
click to buy (button)

then

  • buyer click buy and gets sent to US seller payment page and i take affiliate commision 0 tax :)
or
  • clicks buy and pays to my payment page and i have to incur VAT on the products :(

It seems im at a big dissadvantage being based in the UK rather than US for what i want to do. Do i have to start an offshore company where VAT is 0? Or am i getting something wrong.
 
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