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
I think your first point of reference should be your country taxation board/agency. Regardless of your payment processor's note, they might have some advice for donations. Another option if you don't want tax agent to notice your case is find out from the local civil society scene first as they're also most likely to handle foreign donations. They might give their perspective as institutions with non-profit status but there could those on proprietary status as social enterprises.

Because tax law is so variable I'm not even sure what's the general position of your taxation regime but in general I feel like the PP's notice is not relevant to your jurisdiction if there's been no practice of levying sales tax on donations. You shouldn't need to register internationally either. The sales tax is based on the operator's domicile, not the donors.

But yes, please do check with your local NGOs/charities and tax board (they should offer public advice service)
@feditips

Jul 28, 2023 at 12:20pmWeb