Tax details and the credit note
This chapter describes how the settlement is structured for tax purposes. It is not tax advice. For questions about your own situation, your tax adviser can help.
You do not write us an invoice, you receive a credit note. Your commissions are settled by self-billing (Section 14 (2) of the German VAT Act): we create the document, you do not have to invoice anything. This requires your consent once. That is the item "Consent to the credit note" in the approval list.
Net or gross?
The commission rate is net. What your earnings show as commission is the net amount. Whether VAT is added depends on your tax details at the time of the purchase:
| Your situation | What you receive | What the credit note shows |
|---|---|---|
| standard taxation, same country as the brand | commission plus VAT (19% in Germany) | net, tax rate, tax amount, gross. You pay the tax to your tax office |
| small business (Section 19 German VAT Act) | the commission, without VAT | no VAT shown, note on Section 19 |
| different country from the brand | the commission, without VAT | reverse charge: the brand owes the tax in its country |
So keep your details up to date. If they say “standard taxation” although you are a small business, VAT is shown and paid out that you still have to pay to the tax office (Section 14c German VAT Act).
What the details are for
- Address and tax number (or VAT ID) are mandatory details on the credit note. Without them, no document may be issued.
- Tax status: small business (Section 19 German VAT Act, no VAT on the credit note) or standard taxation.
- If you are based in a different country than the brand whose products you promote, the reverse charge procedure applies for businesses in the EU. For that you need a VAT ID; a tax number is not enough in that case. We verify your VAT ID automatically against the EU system (VIES), and regularly thereafter.
- You provide your service to the respective brand, not to 032 Ventures. The brand pays your commission, and on the document it appears as the recipient of your advertising service. We issue the credit note on its behalf.