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 At least in the United States, there is a distinction to be made between "gift" and "donation." Also, what you're describing sounds to me like maybe you are receiving tips on a zero dollar service. People who receive tips still have to report it as income.

Anecdotally, I used to file my taxes on my own until it reached a point where I felt like I couldn't afford a tax advisor, but I didn't have the answers I needed. When I finally did, my tax return was larger than I had estimated, which more than paid for the $350 or whatever the service cost. Now, a knowledgeable accountant answers my questions during the year at no charge. You might get a similar benefit from taking the plunge if you find the right professional.

Otherwise, you could trust the amount you receive from people in other countries is so low that you don't have to send anything to their country and focus on your country's requirements. What are they going to do? Extradite you over $5 unpaid taxes?

@FlippingBinary @feditips

I am reporting it as income in my in my country. Income taxation is not the issue.

The issue is whether I have to register with the sales tax regimes of dozens of different countries even when the donations are tiny amounts.

@FediThing @feditips I wasn't trying to imply that you aren't. My mention of paying taxes in your home country was a minor part of what I wrote.

Personally, I wouldn't worry about it. Like I said, what are they [other countries] going to do? Your country likely only cares about your compliance with their tax laws, so you're probably safe if another country contacts you with a notice of unpaid taxes or something. If something like that happens, your country probably won't let them haul you away to a foreign prison to serve time for failing to pay foreign taxes on a $20 gift/tip. Right? So the other country would have to let you pay the tax and move on with your life. Since you said you're not making enough to afford an accountant, that's the best you can do right now.

However, like I said before, a tax accountant might save you more money than they charge... while sharing valuable advice that you can rely on.