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Ithiel

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About Ithiel

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  1. Just as a quick follow up to this... Withholding 49% for persons in Australia that have not given their ABN only applies for payments/commission amounts over $75 Ex. GST. So if "John Smith" from Australia (who didn't give me an ABN) made a referral and earned $50 Ex. GST commission (10% of a product that sold for $550 Inc. GST as all commission needs to be calculated on the Ex. GST amounts), he could just get a credit note and be paid normally. However, if he earned a $100 Ex. GST commission (10% of a product that sold for $1100 Inc. GST), he'd either need to supply an ABN or a valid "Statement by Supplier" form, or we'd only be able to pay him $51 (instead of $100), with $49 handed over to the tax office (which would need to be recorded somewhere / somehow). If he supplied a valid "Statement by Supplier" form, even though he still doesn't have an ABN, we wouldn't need to withhold anything. To try and simplify, I've added a 'choose your own adventure' logic path below that should cover all situations :-) Questions: Q1. Seller have an ABN? Yes (go to Q2) / No (go to A2) Q2. Seller registered for GST? Yes (go to Q3) / No (go to Q5) Q3. Affiliate has ABN? Yes (go to Q4) / No (go to Q5) Q4. Affiliate is registered for GST? Yes (go to A1) / No (go to A2) Q5. Affiliate in Australia? Yes (go to Q6) / No (go to A2) Q6. Affiliate has provided a valid "Statement by Supplier" form or the commission amount is under $75 (Ex GST)? Yes (go to A2) / No (go to A3) Outcomes: A1. Issue RCTI and include GST A2. Issue Credit Note without GST A3. Issue a Credit Note without GST, withholding 49% as "no ABN withholding" If the "statement by supplier" and "no ABN withholding" just complicates things too much, then we can just make the ABN a required field if they're in Australia - which just eliminates those parts of the tree, but I wanted to include all the scenarios here to give you a complete picture.
  2. As far as I can tell.. as long as it meets the requirements of an RCTI - yeah, pretty much. However, the RCTI can only be issued in certain situations (i.e. I legally can't issue an RCTI if they don't have an ABN that is also registered for GST). For an affiliate in Australia who has an ABN and is registered for GST, they require an RCTI (with the necessary text and ABNs referenced) For an affiliate in Australia who has an ABN that is not registered for GST, a credit note would suffice (still needs to list our ABN though and should list theirs if supplied). For an affiliate in Australia who has not given their ABN (and hasn't provided a valid Statement by Supplier form - https://www.ato.gov.au/forms/statement-by-a-supplier-not-quoting-an-abn/), I believe that we have to withhold 49% of the amount as "no ABN withholding"/ tax (still needs to list our ABN though) which would need to be listed on the credit note. For an affiliate outside of Australia, who wouldn't have an ABN and isn't subject to this nonsense, I believe a credit note would suffice (still needs to list our ABN though). Thanks!
  3. What is this "free time" thing you speak of? hahaha Righto - well, just let me know when you're good to go and what I need to do to make it happen :-)
  4. Ah, righto - so users will be able to set the plugin to use the Tax ID field that is in the current release of WHMCS if they're running it? I always prefer to use the natively supported fields when/where available (even if it did take WHMCS a horrific amount of time to add them, haha) This is all sounding very exciting - do you have a particular ETA in mind as to when this might be all up and running? I'm keen to try things out whenever you're ready :-)
  5. Righto... sorry for the double-post, but I've just head back from the accountant, and wanted to give you an update :-) ACCOUNTANTS INSTRUCTIONS: The full requirements of issuing RCTI’s are as follows: Both the recipient (yourself) and the supplier (affiliate) must be registered for GST The commission must be based on a calculation process The invoice must clearly show that it is a RCTI - ie have the words ‘Recipient Created tax Invoice’ the recipient’s (your) name and ABN The supplier’s (affiliate’s) name and ABN The date of the invoice Amount of GST payable A clear description of the item sold (i.e. that it is an affiliate commission) You must issue the RCTI within 28 days of making or determining the value of the taxable supply and retain a copy for your records There must be a valid agreement between yourself and the affiliate. You can either have the following paragraph at the end of the invoice (This is a part of the GST legislation and must be word for word) Alternatively, you can have a separate agreement with each affiliate that satisfies the following requirements: must specify the supplies to which the RCTI relates be current and effective when the RCTI is issued, and contain the following conditions: the recipient (you) can issue tax invoices in respect of the supplies the supplier (affiliate) will not issue tax invoices in respect of the supplies the supplier (affiliate) acknowledges that it is registered for GST when it enters into the agreement and that it will notify the recipient (you) if it ceases to be registered, and The recipient (you) acknowledges that it is registered for GST when it enters into the agreement and that it will notify the supplier (affiliate) if it ceases to be registered. (Back To Ithiel's Notes: Regarding the "have the following paragraph" or "have an agreement that contains the following agreement", I guess we just need an option that says 'Include RCTI Declaration on all RCTIs' (yes/no). If yes, it includes that blurb at the end of each RCTI, if no, it doesn't.) Many thanks!
  6. What a mess, haha! The good news for setting this up with Australia's tax rules is that there already exists a "Your TAX ID/VAT Number" field in WHMCS where we've set our ABN, and there is a "Tax ID" field on client accounts that we've also been using to record people's ABN (because on both tax invoices and RCTIs need to have both parties affiliate numbers), so hopefully you don't need to create 'new fields' (as opposed to just running checks on existing ones). If two extensions are needed, then I guess two extensions are needed. Let me know if you've got a 'bundled' offer going at all, hehe. I noticed this extension will also you to set limits on affiliate programs as well (would that allow us to say 'x products only pays a commission for up to 24 months'?) If so... that solves another problem I'd been trying to solve as well. I've sent a link to this thread through to my accountant to ask 'if there is anything else' (they did warn there may be a few extra considerations we need to account for with RCTI's, but I've got what these are just yet). I'll update as soon as I know more. Thanks!
  7. True and valid on all points - hopefully we can get a few votes to get WHMCS to sort a long term 1st-Party solution before we all die of old age though, haha. Let's face it, their corporate overloads will have the spare cash for some R&D after the cPanel price changes that just got pushed though, haha
  8. I'm thinking having shared number might be best, - as it'll help in situations where they're also integrating with accounting platforms have limited support for RCTI's. Fortunately, Australia doesn't have any sequential invoicing rules, so the biggest priority is that they're unique and easy to track/identify. Yes, it is a different document type. The friendly name of an RCTI is a "Recipient Created Tax Invoices". It would also need to say that on the RCI itself. All businesses in Australia need to register for an ABN (Australian Business Number). Then, they can register that ABN for GST (this must be done if your turnover is over $75k/year, but you can choose to do it earlier). When an affiliate registers, they would need to specify if they (a) have an ABN and (b) if they're registered for GST. If both, then they'll need to receive an RCTI for affiliate commission withdrawals and have the GST amount (10%) of any with-GST products (read: basically everything) added to their commission, with the GST amount reflected on the RCTI. For instance, our ABN is 31 459 636 031 (registration details: https://abr.business.gov.au/ABN/View?abn=31459636031). You can see the 4th line lists as "Goods & Services Tax (GST): Registered" - which means that I need to charge people GST on any sales. If another business that is also registered for GST, example 51 876 095 801 (registration details: https://abr.business.gov.au/ABN/View?abn=51876095801) signs up for my affiliate program, I need to pay them GST (because they need to 'charge me' GST) for any affiliate commissions/sales they make. By "GST Registered partner", I was referring to 'any affiliate that signs up that is also registered for GST'. Not all ABNs are registered for GST, but all businesses in Australia will have / need an ABN (from a sole trader to a large corporation). Individual people 'just doing stuff on the internet' might not have an ABN, but this creates an even bigger mess with the AU tax system, so personally I'd want to set the ABN as a required field where 'if you're in Australia but don't have an ABN, you can't register for our program' (if you're international, whatever boats your float, since their tax systems aren't our problem, so we just pay them the ex-gst commission amount and move on). For reference, if you really want to dive down the rabbit hole, an 'individual person in Australia' registering for an affiliate program of a business in Australia would either need to (a) supply their TFN (Tax File Number) so that they could receive the full/normal affiliate commission (without the gst added, of course) or (b) if they don't supply their TFN, the business owner legally has to withhold 47% of the commission amount (source). This starts to get stupid complicated, stupid fast... so having the option to say "people in Australia need an ABN or they can't register" makes life a LOT easier, haha. Many thanks for looking into this. Our tax system is... complicated. Please let me know any additional information I can help with - however some questions may take a couple of days to get accurate answers to, as we'll need to go back to our accountant for clarification of the exact requirements. :-D
  9. Hi Kian, Our accountant recently pointed out some major limitations with the current WHMCS affiliate program regarding how it manages (well, doesn't manage) taxes such as the GST in Australia - meaning that the program is not actually compliant with Australia's tax system. I've created a feature request for them to fix it (which they seem interested in acting on if I can get the votes), as well as a community thread to discuss - in which @brian! mentioned your project and suggested reaching out to you, with the hope that if WHMCS themselves aren't able to address the issue, these desperately needed features may make their way into your project instead. ... Is it doable? Keen to hear your thoughts :-)
  10. The Feature Request Link: https://requests.whmcs.com/topic/make-affiliate-program-australian-gst-compliant-because-its-really-isnt Thanks Brian! Yes, feature requests with WHMCS seem to be a.. um... "long term investment", haha. For what it's worth, they've given it an "Under Consideration" badge. My discussions with the support team were also pretty frank, and they seemed willing to look at adapting the system if we can get enough votes to show there is demand. Here's hoping that other WHMCS users in Australia realise that the program isn't compliant and give it an up-vote, so that we might get this issue sorted before my kids retire. In the meantime, I'll reach out to Kian as well. Cheers, Ithiel.
  11. [I have a feature request about this pending moderation. I'll update this post with a link once it is approved] Hi all, After a few discussions with our accountant, we've discovered that the Affiliate system in WHMCS does not comply with Australian GST/Taxation Law. This kinda throws a spanner in the works. I sent through a couple of questions to my accountant to find out how things need to work here in Australia... and it looks like WHMCS may need some pretty major changes to be compliant. Below are my questions to our accountant, with the accounts response below, with a bit of a summary as to what this means at the end. [Quick Side Note: An "RCTI" is a "Recipient Created Tax Invoice". That is, rather than an invoice from the seller saying "I sold you a thing" (or an affiliate saying "you owe/paid me this much money"), it's an invoice from the buyer/one-running-the-affiliate-program saying "I gave you money"] ------------ Q. Should affiliate commissions be calculated on the Ex GST or Inc. GST amount? A. The commission should be calculated ex GST then calculate the GST on top of the commission. ------------ Q. Do affiliate payouts need to incur/include GST? A. Yes, the affiliate payments do need to include GST if the affiliate is registered for GST. ------------ Q. Do we need an invoice (listing the GST) from the affiliate when they want a payout from their commission balance if they’re registered for GST? Alternatively, do we need to issue an RCTI instead? Or are neither applicable. A. Yes, to claim the GST credits you need to receive a tax invoice stating the GST amount (or have issued a valid RCTI). You can only provide RCTI's if the referral partner is also GST registered. There are also a few other requirements you must meet in order to issue RCTI's. Please let me know if you need more information about this. ------------ Q. Also, if an affiliate is NOT registered for GST – do we just not pay them the GST component of their affiliate commission? A. Correct, if they are not registered for GST you don’t need to add it to the commission. ------------ Back to My Notes: From what I understand, this means that for the affiliate program to be compliant with Australian GST laws, it would need to: Allow WHMCS admins to specify if their business is registered for GST (as any AU business with $75k+ turnover/year MUST be registered for GST). Allow us to set commissions to be calculated on the Ex-GST (pre-tax) amount. Give affiliates the option to specify if they are or are not registered for GST. If affiliates are not registered for GST, they would receive the commission as normal (i.e. how it works now, but ideally still generating an RCTI saying that there was no GST) If affiliates are registered for GST, they would need to have the GST amount (+10% for commissions on sales that incurred GST) ADDED to their commission and the system would then need to generate an RCTI to send through to them. An RCTI needs to list our/the-one-running-the-affiliate-program's ABN, it must say "Tax Invoice" (not just "Invoice" - big legal issues there), and needs to specify the Ex GST amount, the GST component and the Inc GST amount (i.e. $100, $10 GST, total $110 Inc. GST). Without this, the affiliate program is technically causing any Australian affiliate to be in all sorts of mess with GST and compliance with tax. It also means that they're not able to properly claim their GST credits (which can really add up to a lot if they're processing a lot of affiliate sales). So.... yeah. Potentially some big legal and tax issues for anyone in Australia running an affiliate program with WHMCS at the moment. Here's hoping that we can get some up-votes on the feature request and that they can add this feature ASAP 😕
  12. I happen to agree with Schmarvin and several others... charging $20/month (~25% more than WHMCS itself) for what is effectively a rather simple add-on is a little ridiculous. Also, the fact that I sent an email 4 days ago and haven't heard a reply yet is also a little disconcerting.
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