Mastodawn

FediThing has moved!Jul 28, 2023

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

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Jens Bannmann ⁂Jul 28, 2023

@FediThing @feditips

Look into companies which are a "Merchant of Record", a type of full-service provider who takes care of this. "Paddle" and "Lemon Squeezy" are the ones I know.

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FediThing has moved!Jul 28, 2023

@tynstar @feditips

Those are for companies which sell goods or services. I am not selling anything.

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Jens Bannmann ⁂Jul 28, 2023

@FediThing @[email protected]

Good point. Maybe podia.com is suitable? They write "Podia gives you the flexibility to make paid communities, free communities, and memberships on a platform you own." IDK whether they handle sales tax, though.

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FediThing has moved!

@tynstar

Thanks for the suggestions, but I'm not looking for a website host. I just want to find out if I'm supposed to be registering for sales tax on tiny donations.