tech-company, legal, germanyour company wants to introduce a referral program such as when someone signs up from your affiliate link you get 10% from the transaction (real money, not account credits). At the end of the month we count your bonus and transfer you the money.
Since we are based in Germany every single cent that comes out of our bank account needs to be documented. Usually we get an invoice that we pay for. Should it be the same with a referral program such as someone should give us an invoice for the amount of money we need to transfer for the referred customers? And what if someone does not have a company and can not provide us with an invoice?
Does anyone have any experience with this? Thanks in advance!
Usually we get an invoice that we pay for. Should it be the same with a referral program such as someone should give us an invoice for the amount of money we need to transfer for the referred customers?
Under Umsatzsteuergesetz §14(2), invoices may be issued by the supplier (provided it has been so agreed in advance): this is commonly known as “self-billing” and would be the most normal way to handle the situation that you describe. In practice, your affiliate agreement would stipulate that you can invoice yourself for commission on the affiliate’s behalf.
And what if someone does not have a company and can not provide us with an invoice?
Natural persons undertaking a trade are sole-traders, who can still raise invoices under their own name in the normal way.
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