Can anyone tell me whether earnings from affiliate sales commissions or AdSense publishing count towards the threshold that determines if your business must register for VAT in the UK? I was trying to find out about this, and thought they didn't as commissions are not a taxable service. My accountant seems to think they do, but I'm not sure he knows too much about affiliate marketing on the internet. Most of my earnings are in commissions for software sales, through companies like RegNow, Plimus, Digital River etc. There seems to be no place to enter a VAT registration number in the account details with these companies, and I don't know how you could receive commissions gross of any VAT that had been paid. What happens if you are a VAT registered business, regarding commissions. Would I have to pay 17.5% tax on all my earnings, which currently I don't since we are not registered?