Digistore24 offers two types of joint venture partnerships:

1. Joint Venture: Service provision to Digistore24
   1. Brokering of sales
   2. Affiliate management
   3. Support
2. Joint Venture: Service provision to another vendor (help with product creation) e.g.
   1. Creation of course materials
   2. Help in writing an e-book, etc.

In joint venture partnerships, we legally distinguish between two roles: service recipient and service provider.

In the joint venture partner constellations (1) = Service provision to Digistore24, Digistore24 is the service recipient and the joint venture partner is the service provider.

In the joint venture partner constellations (2) = Service provision to another vendor (help with product creation), the vendor is the service recipient and the joint venture partner is the service provider.

Joint Venture: Service provision to Digistore24

Service Flow

The joint venture partner is the service provider to Digistore24:

• In brokering sales, they broker customers for Digistore24.
• In affiliate management, they manage affiliates for Digistore24.
• In support, they provide product support for Digistore24.
• In support management, they manage support staff for Digistore24.

Payout Flow

As Digistore24 is a reseller, Digistore24 pays credits to the vendor and joint venture partner for products and services received.

Joint Venture: Service provision to another vendor (help with product creation)

In the joint venture partnership form "help with product creation," two vendors work together. The joint venture partner provides a service to the vendor who sells his product (and not to Digistore24).

Service Flow

Here, too, the cycle begins with the vendor selling their product through Digistore24. The joint venture partner has helped the vendor in creating the product and thus provides a service to them.

The payment should now be made through the vendor - Digistore24 should for legal reasons make the payment to the joint venture partner via an assignment.

Since this application essentially creates a contract between you and your partner, which you assign to Digistore24, we recommend that you check your settings (especially the VAT rate) with a tax advisor. Please understand that we cannot provide tax advice in this regard. The following parameters must be considered:

• Is the partner liable for sales tax?
• In which country are you and your partner resident?
• What form of business do you and your partner use?

Attention

If you change an existing JV partnership, be sure to take a screenshot of your JV settings before and after the change to have proof of your previous settings in case of a tax audit.

Payout Flow

If the option help with product creation was chosen in the context of the joint venture partnership, the payment of the joint venture partner will also be made through Digistore24, namely through the assignment of the claim. The vendor commissions Digistore24 to pay the joint venture partner for their services. For this purpose, the vendor assigns the claim for remuneration from Digistore24 to the joint venture partner. Digistore24 transfers the remuneration to the joint venture partner and deducts it from the vendor's remuneration.

The vendor may be liable for VAT on the entire remuneration - including the assigned remuneration. The VAT is shown on the Digistore24 credit note.

Proof of Remuneration by Assignment of Claim

The credit note receipt is a credit note that we issue to the joint venture partner in the name of the vendor. Therefore, we can only create credit note receipts in the name of the vendor with their express consent. This credit note receipt is available to both the vendor and their joint venture partner in the credit note document. The joint venture partner commission is also indicated in the commission list.

Since the vendor pays the joint venture partner for a service, a receipt must be created for accounting purposes. The joint venture partner could write an invoice or the vendor could manually create a credit note.

Digistore24 offers to automate this process and create the credit note receipt automatically. The credit note receipt for the joint venture partner is then part of the PDF document with the Digistore24 credit note. As a vendor or joint venture partner, you submit the PDF to your accountant or tax advisor as usual.

Find here an explanation of what the credit note looks like in the case of help with product creation.

Note

VAT on credit note: When you set up your joint venture contract under Account > Contracts, you specify the VAT rate that should be shown on the credit note. Please consult your tax advisor in this regard. We are not permitted to provide tax advice.

Example

If you specify 100 EUR as the JV share and a VAT rate of 19%, the partner will receive 119 EUR for each purchase via claim assignment from you.

Be sure to note the advice on legal consultation.