Here is a situation I would like to know the answer to. I have found numerous contradicting answers on the web.
1. I run an affiliate website which sends leads to a company that handles money transfers in and out of South Africa.
2. To cut a long story short, I get paid on how much is transfered, which is a variable amount every month.
3. This amount is therefore an affiliate commission.
4. I invoice them for the amount.
5. I am not VAT registered.
6. They are VAT registered.
I have heard that if I am VAT registered, I charge them VAT on top of the amount. But I am not, so I presume I charge them just the amount. They tell me it is the amount less VAT. Various financial professionals tell me they are wrong. Yet on various online affiliate agreements on public websites I find that they charge in the same way. I can't find what SARS says.
Are they supposed to charge me VAT within the amount or just the amount?