Why no invoices are needed for payments from affiliate programs?
 

We have a company, affiliate programs (sponsors) have a company. We provide them a service of marketing their products through their affiliate program.

Yet not one affiliate program has ever asked us to send them an invoice for the service we provided in order to pay us. And we've worked with over 400 of them.

How do they justify the payment as a tax deductible expense without our invoices?

Do they treat all affiliates as natural persons (who don't need to issue invoices) and therefore disregard the fact that we are actually a company they should get an invoice from?

Where's the catch?

I think typically an invoice is mostly used as a form of bill. They don't need the bill because they already know how much to pay you from their stats. They consider you or your company a contractor so they should send you a 1099.

for every payment we receive we write an invoice to the affiliate program, we just don't send it. but it makes book keeping much easier.

They have proof of payment. More so, an invoice can be just as much proof of your income.

Bank statements are an easy form to show for tax purposes. :2 cents:

I think the above covered it, but I am actually with one program I have to invoice when I want paying lol

so bill is all they need?

They are probably based in a country that is hung up on paperwork and doesn't understand electronic documents.