Before you pay an affiliate commission, ask for an invoice. It is what justifies the payment in your accounts and protects the deductibility of the expense. For the affiliate, the absence of a compliant invoice is a liability in case of an audit.
This template covers the most common case in B2B affiliate programs: an independent affiliate (sole trader or company) invoicing commissions to a merchant. Adapt the VAT block to the actual situation — that is the field most affiliate invoices get wrong.
Mandatory invoice fields
Under the EU VAT Directive (2006/112/EC, articles 226 and following), a business-to-business invoice must show:
- the word "Invoice", a unique sequential number, and the issue date;
- the supplier's identity (the affiliate): name or company name, address, and VAT identification number where registered;
- the customer's identity (the merchant): company name, address, VAT number;
- the description of the service: "affiliate commissions" and the period covered;
- the net amount, the VAT rate and amount (or the exemption reference), and the gross total;
- the payment terms and due date.
National rules add specifics, so confirm the requirements of the supplier's country.
The template
INVOICE No. [YYYY-MM-001]
Issue date: [DD/MM/YYYY]
Due date: [DD/MM/YYYY]
SUPPLIER (Affiliate)
[Name / Company name]
[Full address]
Company / tax ID: [number]
VAT number: [CC XXXXXXXXX]
CUSTOMER (Merchant)
[Company name]
[Full address]
VAT number: [CC XXXXXXXXX]
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Description Qty Unit Net total
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Affiliate commissions 1 [amount] [amount]
Period: [month YYYY]
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Net total [amount]
VAT ([rate] %) [amount]
TOTAL [amount]
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Payment terms: due within [30] days.
Bank transfer:
IBAN: [XXXX XXXX XXXX XXXX XXXX XXXX XXX]
BIC: [XXXXXXXX]
Adapting the VAT block
The VAT line depends on the affiliate's status and location. Three cases cover almost every situation in European affiliate programs.
VAT-exempt small business (most common for sole traders)
Many small affiliates fall under a national small-business VAT exemption and do not charge VAT. The net amount then equals the amount to pay. The invoice must carry the country's exemption reference.
VAT not applicable — small-business exemption. In France this is "TVA non applicable, art. 293 B du CGI"; other EU countries have their own equivalent reference. The affiliate is responsible for monitoring their own exemption thresholds.
VAT-registered affiliate in another EU country (reverse charge)
When an affiliate established in another member state invoices a VAT-registered merchant, VAT is reverse-charged to the customer: the affiliate invoices without VAT and adds the reverse-charge note. The merchant self-accounts for VAT in its return.
Reverse charge — VAT to be accounted for by the customer (art. 196, Directive 2006/112/EC). Validate the affiliate's VAT number in the VIES system before paying. The full mechanism is covered in VAT on affiliate commissions in the EU.
Affiliate outside the EU
The commission is generally outside the scope of EU VAT. Keep evidence of the affiliate's location.
Related resources
- The full mechanism: VAT on affiliate commissions in the EU
- The merchant's side: Paying sole-trader affiliates in the EU
- The contract that frames the relationship: Affiliate contract template
- Check your numbers: commission VAT / SEPA calculator
How RefCampaign helps
RefCampaign calculates commissions on your Stripe revenue and keeps the history per affiliate and per period — exactly the data an invoice should reflect. Payouts run over SEPA, with data hosting and processing in the EU.