Thanks for the feedback. My accountant has advised I register for VAT for exactly the reasons stated, especially as I do spend a lot on marketing each month and it all attracts VAT. What my accountant failed to clarify to my satisfaction was the issue about if I can get away without charging VAT to offshore companies who we know will not pay it as it is inappropriate for them. That was the only thing stopping me registering. I would appreciate further comments on any experiences anyone else has. I would register in a shot (despite the undoubted hassle) if I knew for absolute certain that I did not need to pay the revenue VAT on invoices I get paid from offshore betting companies. Remember, as an affiliate, in effect, I am invoicing the company that pays me (even if the mechanics don’t quite work that way in reality). So I would be invoicing Victor Chandler (for Victor Chandler read “any offshore company that does not register for VAT”) for the earnings I am due. As I am VAT registered in the UK, I still have the concern that I may have to add VAT to that invoice despite the fact we all know Victor Chandler will not pay it (as they are in control of payments to their affiliates and understandably won’t add VAT). I obviously loved Simmo’s answer. I just wish my accountant had said the same thing in as definitive and clear way. Because my accountant didn’t I am still a little uncertain. So if anyone (i.e: a UK affiliate registered for VAT) can confirm their personal experience and reiterate that Simmo is totally correct that I don’t need to add VAT to invoices to non-VAT registered offshore companies then I would grateful!