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 threadMairita Jul 28, 2023
@FediThing @feditips most probably you need to look into OSS https://vat-one-stop-shop.ec.europa.eu/index_en and have a talk with your local state revenue service. For example, in my country SRS has an option that a person signs up to pay VAT and pay OSS through them, then you do not need to sign up for OSS in other countries.
I do not know all the details, but that's what I have gathered from local SRS.
Show threadFediThing has moved!Jul 28, 2023

@mariilasa

That only covers sales of goods or services though? I am not selling any goods or services.

I'm doing the services and sites for free (in fact I'm having to pay money to host the sites), and people can send a donation if they want to. There is no transaction going on as such.

Show threadMairita Jul 28, 2023
@FediThing yeah, but you are receiving services. Those rules are hekin' complicated, so I suggest to read first about VAT and OSS and then talk with your local SRS. There are exceptions and thresholds and whatnot. Maybe in your case you do not need to register and pay.
Show threadFediThing has moved!Jul 28, 2023

@mariilasa

I don't understand. I'm not receiving services?

Show threadMairita Jul 28, 2023
@FediThing To me it feels like donations are something else and you would not need to pay, but maybe tax office can think about company/site that acts as means to receive these donations as a service provider and you as a service receiver and you need to prove that you do not sell anything. Strange that service providers cannot advice you in this case, but most probably they just don't care.
I used to sell some things on Etsy, so I am struggling myself with all this tax stuff and latest changes.
Show threadFediThing has moved!

@mariilasa

Yeah... I think they just don't care 😁

Thanks for your help.

Jul 28, 2023 at 11:51amWeb
Show threadMairita Jul 28, 2023
@FediThing good luck with figuring out this nightmare :D