Information for Accountants
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As a Tebex Checkout user based in the EU, you are not selling any items to end consumers (players), as such you have no Sales Tax / VAT to pay on the final purchase.
You are selling digital content only to Tebex Limited. As Tebex is a UK-based company, the place of supply for such sales is the UK. As such, and as per EU guidelines, you are providing this to a company outside of the EU, so no VAT should be charged by you - however you can still reclaim VAT on related expenses:
As the merchant of record, we are registered to pay VAT in the EU (through the non-resident VATMOSS scheme), and as such we will collect VAT from players in every EU country, and remit that to the relevant authorities as required. We are entirely responsible for this (as we are the ones selling the goods), and you do not need to advise anyone of this. In your accounting, your income is the Trade Price you charge us (which you can see invoices for in your Tebex Wallet that we prepare on your behalf), not the value of the sales to customers (as they are not your sales).
As a Tebex Checkout user based in the UK, you are not selling any items to end consumers (players), as such you have no Sales Tax / VAT to pay on the final purchase.
You are selling digital content only to Tebex Limited. As Tebex is a UK-based company, if you are VAT registered then you should charge us VAT on the sales to us.
We still collect and remit the VAT from the sale of goods to players (since we are the party making those sales). As a convenience to you, we will automatically calculate the amount of VAT to be charged by you to us on the Trade Price you charge us for content and add this to the weekly invoices generated in your Tebex Wallet. We will then remit the due VAT to you on a monthly basis for you to include in your VAT return and remit to HMRC. This is usually be around the 15th of the following month, and at the very latest will be completed by the end of that month. For example, the VAT for weekly invoices issued in March will be paid between the 15th - 30th April.
In order to register as a VAT-registered seller in the UK, please contact our compliance department at compliance@tebex.io, providing your VAT registration certificate and your business registration document if you are not already registered with a business wallet.
Tebex is a UK-based Merchant of Record. We are buying content from you as a supplier, for us to re-sell to our gaming customers. As such, please bear the following in mind with regards reporting your income:
We do not issue 1099 forms to US suppliers for a number of reasons:
Since the company is based in the United Kingdom, we are not subject to IRS 1099 reporting requirements
You are a vendor selling a product to us, as opposed to an independent contractor or other providing services to us, and as such we would be unable to provide 1099-NEC (for non-employee compensation) or 1099-MISC (for royalties or other income) even if we were under the 1099 reporting requirements.
We strongly recommend contacting a local tax advisor who can provide qualified guidance on how to correctly report your income.
As a general guide, the income you earn from the foreign company is considered as self-employed income and you are required to report this income on your tax return as self-employed income. You report the income you received in cash, checks or bank transfers or without a 1099-NEC as self-employed income under Other self-employed income.
We are not qualified to give legal nor accounting advise in the USA, and as such we advise you to contact a local practitioner familiar with Merchant of Record/supplier relationships.
Please note, Tebex is only responsible for VAT and similar sales tax. You may be liable for other income, franchise or corporate taxes. You should consult your accountant to ensure that all taxes and income are correctly reported in your jurisdiction.
