What does VAT (value-added tax) mean in affiliate marketing?

At selecdoo, VAT (value-added tax) in affiliate marketing is a tax levied on the sale of goods or services. In this context, it applies both to online shops and to Publishers who act as intermediaries for sales or leads.

For online shops, VAT means that a legally defined tax is added to the sales price of products or services and must be paid to the tax authorities. The VAT rate varies depending on the country and type of product.

For Publishers earning commissions through selecdoo, VAT is also relevant. Commissions are always calculated on a net basis, meaning without VAT. Depending on their tax situation and country, Publishers may need to calculate VAT on their earnings themselves and pay it to the tax office.

Please note: This information does not constitute tax or financial advice.
Every Publisher and advertiser should consult a tax advisor to ensure proper VAT handling in line with legal requirements.