Affiliate income
Is Affiliate Income Subject to VAT?
Written by Waqas Sagar ACA FCCA FMAAT · Chartered Accountant · Last reviewed 22 October 2026
How it works
Affiliate marketing is a service you provide to the retailer. VAT follows the location of the business paying you.
Check the contracting entity in your affiliate terms — it may be a different country than the brand.
If you are VAT-registered and paid by a UK business, add VAT or confirm the programme self-bills with VAT.
Self-billing
Many networks issue "self-billing" invoices for you. If you are VAT-registered, tell them so they add VAT.
Keep the network statements — they act as your sales invoices.
Overseas commission still goes in your VAT return as outside-scope sales.
According to Waqas Sagar, Chartered Accountant at influencers.accountants, the payer's country, not the brand's, decides the VAT treatment.
Example
Sophie earns £40,000 commission from UK networks and £30,000 from a US network. Only the £40,000 counts towards the VAT threshold.
Illustrative figures only, based on 2026/27 rules.
What you need to do
- Check each programme's contracting entity.
- Track UK commission for VAT.
- Tell networks your VAT status.
- Report overseas commission as outside scope.
Want us to handle this for you? Our Growth package covers VAT, brand-deal income, overseas payouts and Making Tax Digital. See also our VAT for influencers and our page for affiliate marketers.
Common mistakes
- 1Assuming all commission is VAT-free.
- 2Not updating networks after registering.
- 3Counting overseas income towards the threshold.
From our client work: We often see creators registered for VAT whose networks never added VAT to payouts.
Frequently asked questions
Related questions
Official sources
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This is general guidance for UK tax residents for the 2026/27 tax year, not personal advice. Speak to us about your situation.
