International sales tax advice needed!
I have a tip jar for my accounts and websites ( @feditips, https://fedi.tips etc) which I mainly use to cover their costs. One of them is through ko-fi, the other is through liberapay. Income tax is not an issue, I declare what I get to my country's government as part of my tax return.
The problem I have is that my payment processor is now informing me I might (or might not) have to keep track of sales tax on donations:
-I'm not selling anything, there are no perks for donors. The services will happen regardless of whether anyone tips me.
-It would be incredibly complicated, it would mean registering with dozens of different countries.
-The total donations from each country are tiny, usually a few euros per year. The largest one is a few hundred per year.
-I'm not earning enough to have an accountant.
-I can't find any advice on this situation!
Can anyone help?
#AskFedi #Tax #Taxation #SalesTax #VAT #KoFi #LiberaPay #Accountancy #Accountants #Money
International sales tax advice needed!
I have a tip jar for my accounts and websites ( @feditips, https://fedi.tips etc) which I mainly use to cover their costs. One of them is through ko-fi, the other is through liberapay. Income tax is not an issue, I declare what I get to my country's government as part of my tax return.
@FediThing @feditips most probably you need to look into OSS https://vat-one-stop-shop.ec.europa.eu/index_en and have a talk with your local state revenue service. For example, in my country SRS has an option that a person signs up to pay VAT and pay OSS through them, then you do not need to sign up for OSS in other countries.
I do not know all the details, but that's what I have gathered from local SRS.
I am no professional tax-adviser, but I can support the claims made that you do not need to do anything in case of having a limited revenue.
In Germany there is a special rule which allows you (up to quite high revenue volumes actually) to be exempt from sales tax (at the 'price' of not being able to do a deduction of the sales tax on your expenses).
@feditips @FediThing
@FediThing If you aren't registered for sales tax in your country, I don't see how anyone could pay you sales tax on a donation?
In the UK, if your turnover is £85k and above, you have to be VAT-registered and you have to collect VAT on every sale. I doubt you would need to be VAT-registered in the UK if you're based in, say, France, and are getting €200/year from people in the UK.
You aren't selling anything; these are donations.