A. Income Tax. A Wellness Advocate accepts sole responsibility for all self-employment and income taxes due to income earned as a dōTERRA Wellness Advocate.
B. Sales Tax. dōTERRA is legally required to charge value added tax (VAT) on its sales to its Wellness Advocates. Wellness Advocates whose annual turnover (from their dōTERRA distributorship and any other business) are required to register for VAT and will then charge VAT on their own product sales but should be eligible to reclaim the VAT which they have paid on products purchased from the Company. Wellness Advocates are responsible for determining whether or not they are required to register for VAT and, if so, registering and complying with all applicable VAT requirements.
In the event that SARS takes a different view from the parties, with regard to the nature of the relationship between the Wellness Advocates and dōTERRA, then dōTERRA is obliged to withhold or deduct tax from the amounts paid to the Wellness Advocate sin compliance with its legal obligations, and it will not gross the Wellness Advocates up in those circumstances.
If the Wellness Advocates do not comply with their obligation to account for taxes on their remuneration from dōTERRA and dōTERRA is held personally liable for such taxes as a result of their failure to do so, Wellness Advocates will indemnify dōTERRA for the amounts (taxes, interests, and penalties) paid to the tax authorities.