Thanks for your post. You imply that you think your accountants are wrong about this. I am sure they are wrong about this. They would be more correct if your were the casino or bookmaker. However an affiliate is being paid a commission for marketing in effect and it would be fine to register for VAT I think. As you say, many larger affiliates are VAT registered and this thread demonstrates that. Interestingly even the bookmakers have found a way to register for VAT for some of their activities i.e: the affiliate departments of the bigger operators that are UK based are VAT registered. I am not guessing. I have e-mailed them individually about this and the likes of Bet365, Blue Square, The Tote (Totesport) etc are VAT registered, certainly for their affiliate activities. So they have found a way of persuading the revenue that they can legitimately be registered. It was not always the case. Back to the more clear cut issue of affiliates – from the advice I have taken I see no problem in them being registered for VAT and I think your accountant’s advice may be faulty.