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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@FediThing @feditips
I'd suggest you contact your tax office and ask. If some other organisation is responsible for VAT, they should be able to tell you which one.

I suspect if the service happens whether you get donations or not, you may be in the clear. At least when I (in Germany) pay something for a "pay what you want" item on itch.io with no minimum price, they don't add VAT, but they do for items which are sold.

Jul 28, 2023 at 11:42amWeb