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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Show threadSuspect-SimilarJul 28, 2023
@FediThing @feditips Most countries will have a minimum earnings value that will make the tax filling compulsive. Below that value, you will not have to file anything. Inside the Eurozone, I believe you can declare those earnings as originating in your country and your work as an export. Please contact your tax administration to clear this. I believe that for a very low value, you don't need to do anything.
Show threadFediThing has moved!

@Suspect_Similar

Thanks for the help, but I'm not concerned about income tax, that is already dealt with.

I am just concerned about whether I need to be keeping track of sales tax on donations. If I do, then it might mean I cannot accept donations any more.

Jul 28, 2023 at 11:27amWeb
Show threadSuspect-SimilarJul 28, 2023
@FediThing Again, my advice would be to consult your tax administration. In the tax code of your country should be made explicit for how long you could be audited, and you should keep the documents for that period. But any of these things will depend on the tax code you are subjected to.