Indirect Tax for Partners FAQ

Published on: Fri, 14 Apr, 2023 at 6:54 AM | Updated on: Tue, 23 Jan, 2024 at 6:04 AM

Is indirect tax the same as VAT?

Yes. Indirect tax is the global term impact.com uses for Canada’s Harmonized Sales Tax (HST), the Quebec Sales Tax (QST), what some countries call the Goods and Services Tax (GST), the Value-added Tax (VAT), Spain Withholding Taxes (WHT), and other country- or region- specific tax policies.

When is indirect tax levied?

Note

This option is not available to US partners. Refer to the EIN/SSN/Foreign Tax Id instead.

If both parties are registered for indirect tax in the same country or region, then the tax is levied when a transaction occurs. You can also view the aggregated indirect taxes when an invoice is produced.

Note

You’ll declare if you are registered for indirect tax during the sign-up process. When you do, you’ll also provide your indirect tax number and the country in which you are registered.

The table below provides some examples of when indirect tax is levied or not:

Brand country	Partner country	Is indirect tax levied?
UK	UK	Yes
Germany	UK	No*
Germany	Germany	Yes
Not registered	Canada	No
Not registered	Not registered	No
Australia	US	No
Spain	Spain	Yes

* A reverse charge mechanism would apply in the European zone, so indirect tax is levied at 0%

Where can I access my indirect tax number?

From the left navigation bar, select [Menu] → Settings.
Under General, select Company Information.
Under Tax Information, view your Indirect Tax Number.
- If you aren’t registered for indirect tax, this field will be blank.

Can I remove or update my indirect tax number?

Yes, you can change or remove indirect tax information at any time after your account has been created.

From the left navigation bar, select [Menu] → Settings.
Under Finance, select Tax Information.
Update the relevant information and select Save.

Warning

You should ideally not change or remove your indirect tax information after providing these details during the sign-up process unless it’s absolutely necessary, e.g., you did not previously qualify for indirect tax and now you qualify. Changing this information affects whether the appropriate rates are billed against your actions or not and whether the correct amounts get added to your monthly invoice.

If you are unsure whether or not you should change your indirect tax information, please contact support.

Should I change my indirect tax number if I relocate to a different country or region?

Only if you are registered for indirect tax in the country or region to which you have relocated. If you aren’t sure, ask your Legal or Compliance teams to find out, or reach out to the appropriate legal counsel.

If VAT was not added, once an action was generated, can we add it afterward?

No, impact.com only levies indirect tax at the time the action occurs.

Is the EIN/SSN/Foreign Tax ID and the indirect tax number the same?

No. EIN/SSN is specific to US partners and like the foreign tax ID in no way related to indirect tax.

The EIN/SSN and foreign tax ID is obtained from the following tax documents:

EIN/SSN from a W9
Foreign tax ID from a W8

Tip

If you have any business in the United States, you must submit the appropriate Form W tax form. Learn which form you should use depending on your circumstances and about the tax form difference.

Related Articles