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 threadAdrian MoralesJul 28, 2023
@FediThing @feditips What platform are you using? What's their policy? Are they tax-exempt?
Show threadFediThing has moved!Jul 28, 2023

@adrianmorales

I'm using Kofi and Liberapay as donation platforms and Stripe as a payment processor, but like all of these platforms they say it's the responsibility of the user to make sure they are tax compliant.

But I cannot find any advice anywhere that covers the situation of a free online service which accepts donations.

Show threadAdrian MoralesJul 28, 2023

@FediThing On the platforms I use, I had to fill out one of those 1099 tax forms.

You should do the same on Stripe: https://stripe.com/docs/connect/get-started-tax-reporting

Show threadFediThing has moved!Jul 28, 2023

@adrianmorales

I think that's an income tax thing, and only for people in the US.

Show threadAdrian Morales

@FediThing I don't live in the U.S. either, but there's an option to mention that you're not a U.S. citizen.

Should your bank ask for documentation, you send them this form. If you're still worried, contact your bank. They should help out with everything you may need.

Jul 28, 2023 at 11:45amWeb
Show threadFediThing has moved!Jul 28, 2023

@adrianmorales

"but there's an option to mention that you're not a U.S. citizen. "

That is presumably for people who live in the US and aren't citizens?

Show threadAdrian MoralesJul 28, 2023

@FediThing It's for citizens of other countries. When I first published my books on Amazon and Google, I also had to fill out this form.

I mentioned I'm not a U.S. citizen, and they told me I might be tax-exempted due to the economic agreements between my country and the U.S.