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

Fedi.Tips – An Unofficial Guide to Mastodon and the Fediverse

An unofficial guide to using Mastodon and the Fediverse

Show threadDarkpaw

@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.

Jul 28, 2023 at 11:38amIvory for iOS