Today’s news is that Overstock have decided that they are axing 3400 affiliates in the New York area because of the previously reported “Amazon Tax” – which Amazon are fighting.
I think Janet was the first to break the news of the Overstock changes
The New York Times also has coverage and been giving out some great links.
Techcrunch has a Scribd copy of the original Overstock posted letter (Shawn posted the email)
The New York Times reports that
Linda is also reporting that this may soon affect California as well (there are lots of affiliates in California, they like the beaches)
On the good side, this may soon affect our good friend Jason Calacanis, who as a new affiliate I am sure was hoping to make some money from reputable sites such as Overstock.
So Why The Google Tax Headline?
This isn’t specific to Google, it could be any website advertising.
Google have a referrals program for various products
If you run Google Adsense on your blog, you are in many ways an affiliate of Google’s advertising program, you are selling traffic on their behalf.
So Where Would It Be Taxed?
Lots and lots of options
- California – Google’s primary location
- Where the servers are located
- Anywhere Google has a physical presence (everywhere?)
- The location of the company buying the advertising
- The location of the servers of the company buying the advertising
- The location of the person clicking an advert, or maybe the proxy server, or the company that is billed to
- The location of the publisher displaying the ads
Adwords advertisers in the EU have paid VAT since 2003 – I believe there is something similar in Taiwan
Adsense publishers in the EU if required can issue Google with a VAT invoice
As far as I am aware, no sales tax is charged in the US at any point in the chain.
As soon as you start down the rabbit hole of online business, the lines get blurred
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