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Ithiel

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About Ithiel

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  1. Hi Amanda, I actually came to this thread because I'm stalking @Kian, but I actually had (and found a solution) for the problem you're describing, so I figured I'd share. :-) I used an addon called "Affiliates Plus", which includes an "Affiliates Anywhere" feature that allows you to setup custom affiliate links that redirect to landing pages that can be on other sites. With a bit of trickery involving redirecting from your live site back to your whmcs install (which then redirects back to the final page on your live site), it is possible to have clean affiliate links on bettylouhosting.com that point to the page you want and still track for affiliates. The Addon: https://marketplace.whmcs.com/product/3617 The instructions: Go to the Reviews tab of the link above, find the review by "Adam Ithiel" (the great big long one) and I go into details as to how I got that to work there. It's a bit to setup, but works like a charm :-)
  2. Well... Here's hoping that you managed to reserve the table in time, otherwise I guess we're all in trouble, haha. Let me know if there's anything I can do/help with to get this higher on that rather terrifying list of yours :-D
  3. How goes the battle, @Kian? :-) Please let me know if you need any additional information or if anything in the above didn't make sense. I'm really keen to try and test this out as soon as possible.
  4. I do love a good flowchart! Yes, that is correct. Please keep in mind that for "Statement by Supplier OR <$75 AUD?" (per https://www.ato.gov.au/forms/statement-by-a-supplier-not-quoting-an-abn/), this relates to the payment... So even if they were receiving $5/month commission, if that built up to $80 and they wanted to withdraw it all at once... the payment would be over $80, so if they're an Aussie without an ABN, they'd need to have supplied a Statement by Supplier or be hit with the 49% GST witholding. Regarding your question... Scenario: A product is sold by a GST-registered seller for $1100 Inc. GST (meaning $1000 + $100 GST) and the affiliate makes a 5% commission. 5% Commission is calculated off the Ex-GST Amount (0.05 * $1000 = $50 commission). If "Credit Note without GST" scenario, the commission awarded to the affiliate is $50 (No GST) If they sell this product 5 times, their total commission is $250 (No GST). When requesting a payout, they would receive $250 and a Credit Note that makes no reference of GST If seller and affiliate both have an ABN and are both registered for, the commission awarded to the the affiliate is $50 + $5 GST If they sell this product 5 times, their total commission is $275 Inc. GST ($250 commission + $25 GST) When requesting a payout, they would receive $275 and an RCTI listing $250 commission, $25 GST, total $275 Inc. GST. Similarly, in your scenario, assuming that the $100 you reference commission was calculated off the Ex GST amount, the answer would be #2. An affiliate gets "paid" extra money if they're registered for GST, but they don't get to keep the extra bit as it goes to the ATO (tax office) :-) Scenario 2: Another product is sold by a GST-Registered seller for $1000 GST-Free, because it was not a GST eligible product (some things are GST exempt), and the affiliate makes a 5% commission. 5% Commission is calculated off the Ex-GST/GST-Free Amount (0.05 * $1000 = $50 commission). If "Credit Note without GST" scenario, the commission awarded to the affiliate is $50 (No GST) If they sell this product 5 times, their total commission is $250 (GST-Free). When requesting a payout, they would receive $250 and a Credit Note that makes no reference of GST. If seller and affiliate both have an ABN and are both registered for, the commission awarded to the the affiliate is $50 GST-Free (must reference that there was no GST) If they sell this product 5 times, their total commission is $250 (GST-Free), from $250 commission + $0 GST. When requesting a payout, they would receive $250 and an RCTI listing $250 commission, $0 GST, total $250 GST-Free. There was no GST collected, so no GST is to be paid to the affiliate, but you need to still mention that. Scenario 3: Two products were sold by a GST-Registered seller. One for $1100 Inc. GST, the other for $1000 GST-Free, and the affiliate makes a 5% commission. 5% Commission is calculated off the Ex-GST/GST-Free Amount (0.05 * $1000 = $50 commission, 0.05 * $1000 = $50 commission). If "Credit Note without GST" scenario, the commission awarded to the affiliate is $100 (No GST) When requesting a payout, they would receive $100 and a Credit Note that makes no reference of GST If seller and affiliate both have an ABN and are both registered for, the commission awarded to the the affiliate is $100 + $5 GST When requesting a payout, they would receive $105 and an RCTI listing $100 commission, $5 GST, total $105 Inc. GST Where GST is collected, it must be paid proportionately to the affiliate. When no GST was to be collected, no GST is to be paid. When its a mix, they just get their bit of the GST for the bits that incurred GST. Source: https://www.ato.gov.au/Business/GST/In-detail/Your-industry/Travel-and-tourism/GST-and-international-travel/?page=6 Summary: When issuing an RCTI, you need to include the extra 10% for any products that were sold Inc. GST As the RCTI needs to list the commission, the GST, and the total. If some commissions incurred GST and others didn't, they would need to be listed as separate line items on the RCTI. Using this as a rough guideline (https://www.ato.gov.au/assets/0/104/694/815/f3b7bc3a-d97f-481d-ade4-464e7d6df32e.pdf), it would be laid out something like this: Commissions | $50 | $5 GST | $55 Inc. GST Commissions (GST-Free) | $50 | $0 GST | $55 GST Free Totals: $100 | $5 GST | $105 Inc. GST In case you're wondering when products/sales aren't subject to GST... If I normally sell my hosting for $11 Inc. GST / Month, Someone in Australia will pay $11 Inc. GST, so a GST-registered affiliate earning 5% commission would receive $0.55c Inc. GST. Someone in Europe will pay $10 (GST-Free), so a GST-registered affiliate earning 5% commission would receive $0.50c (GST-Free) Commission. Even if my web hosting server was in Europe, as my business is registered in Australia, whether I charge GST for a GST-applicable product depends entirely on whether "the recipient of the service is outside Australia". There are also products that are simply exempt from GST, but it's the sellers responsibility to configure their products accordingly. Hope that helps! Legal: I am not an accountant - please do not treat this (or any other post here) as personal financial or accounting advice. This is simply me describing this mess as best as I understand it. :-)
  5. Woohoo! Glad to hear we're getting closer! Super excited for the Aussie stuff to be ready :-D
  6. 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.
  7. 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!
  8. 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 :-)
  9. 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 :-)
  10. 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!
  11. 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!
  12. 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
  13. 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
  14. 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 :-)
  15. 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.
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