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Hoots : Am I required to issue tax forms for the users of my website (on which they can earn money)? The website in question is a peer-to-peer platform. Users can contact each other and agree a fixed cost for a particular service. - freshhoot.com

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Am I required to issue tax forms for the users of my website (on which they can earn money)?
The website in question is a peer-to-peer platform. Users can contact each other and agree a fixed cost for a particular service. I take a percentage of the cost and the rest goes to the user who carries out a service.

If it matters, users get paid as soon as they have completed the agreed task and the customer is happy with the results (i.e.: the customer releases the funds from an escrow account)

The platform is intended to be available in multiple countries across the world
The business is registered in the UK.

As the website/business owner, do I need to issue tax forms to those users who earn money on my website? For instance, I believe US users would need a 1099 form?

Am I legally required to issue such forms? For each country?


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That would depend on if you are contracting the person providing the service, or merely acting as a safe method of ensuring quality and payment.

If it's a service contract between customer and service provider then you have no hand in it other than what you owe in taxes off of your cut.

If it's either an independent contractor working for you, or an employee working for you, and you manage the jobs/contracts, then you need to issue the relevant tax form to the service provider.

Good examples of what I mean are services like Uber, where the drivers are independent contractors. As Justin Cave points out, these companies would be required to issue a tax document to their drivers. On the other hand, services such as Craigs List or Venmo do not need to issue work related tax documents, even if the contract comes about as a result of introducing the 2 parties, or even if the money moves directly through the intermediary company. The difference is in how the service provider is contracted.


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