VAT and other taxes?

Discussion in 'Indie Business' started by Reives Freebird, Dec 8, 2011.

  1. lennard

    Moderator Original Member Indie Author

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    More or less what I said in an email response to this thread that I deleted. It's onerous and ridiculous. I'm glad BMTMicro makes it simple for me but it's a system that only a government employed bureaucrat could imagine up. The same kind of folks who have managed to bankrupt cities in the US (Vallejo anyone?) because they couldn't look ahead to see consequences that follow actions.
     
  2. Gary Preston

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    At least you only have to submit to a single country in the EU with relevant documentation and they'll sort the sub distribution out rather than register for VAT in every country you sell to. Still, not an ideal situation since every country can have different VAT rates which I imagine needs charging and accounting for.

    I can understand why the EU wants VAT charged when you sell to people that live in the EU though. If it wasn't the case, all EU companies selling online would be at a disadvantage price wise as non EU countries would automatically have a 15-20%+ advantage in pricing. The same doesn't apply for traditional sales due to been able to slap VAT and import duties on as the goods pass through customs.

    Not saying it's right or wrong, just that I understand the reasoning.

    Just been reading more on the HMRC site and it sounds like*, for the purposes of game sales, if you're in the UK and sell to the UK or EU, VAT is charged at the UK rate. I could be misinterpreting the site but it says for the purpose of place of sale to a non-business customer it's the place where the supplier belongs. Unlike if you were contracting for a company, where place of sale for vat would be where the customer belongs.

    So for those in the EU, it sounds like VAT isn't too bad for digital goods.

    BTW the following hmrc page covers non-EU to EU electronic sales for VAT purposes.

    Still, it makes me glad I don't need to be VAT registered yet, the small amount I'd be able to claim back on purchases isn't worth the headaches in charging it :p

    * Disclaimer: Ignore me and speak to someone who's qualified to give this kind of advice :p
     
    #42 Gary Preston, Dec 13, 2011
    Last edited: Dec 13, 2011
  3. Nutter2000

    Original Member Indie Author

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    I think this thread has strayed waaayy off topic and needs to be locked.
    It seems to me to be going round in circles with gamer247 getting more and more irate over apparently nothing.
     
  4. cliffski

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    But we haven't had angry flamewars here for ages!!!

    The sales tax thing is kinda broken in 2011. Businesses have adapted by politicians have not. Taxing sales in 2011 seems overcomplex for all the reasons mentioned, taxing income always seems silly to me, because politicians want us to work hard and achieve things, and then to go buy things to stimulate the economy, but high income and spending are both taxed heavily WTF? The more money I earn, the more government tries to tell me to stop doing better.

    I'd definitely go with taxes associated purely with stuff you want to discourage (like pollution) because taxing something disincentivises it. Maybe taxing unhealthy food, certainly alcohol, energy-intensive stuff, blah blah. In the UK we seem to tax people who work hard and do well, and subsidise people who sit on their ass watching TV, but I digress :D

    TL,DR: Handling salestaxes online is a mess. Get a payment provider to deal with it. They've done it before.
     
  5. Nexic

    Indie Author

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    1000% agree. Of course I think it's unlikely we'd generate anywhere near enough revenue from just taxing the 'bad' stuff to subsidize all the lazy gits to carry on being lazy. Also, there are far too many people with the vote who mainly care about sticking it to the rich 'toffs' who won't allow that to happen (apparently your actual upbringing is irrelevant, as soon as you do well financially they hate you). Therefore, any attempt to stimulate entrepreneurial spirit is often met with hostility, and seen as "making the rich richer". Not that it's even a bad thing, rich people getting richer usually means a bigger economy, more jobs and generally far more money for everyone. Of course, when that happens they'll all complain that the rich > poor gap is increasing. Who cares as long as we're all getting richer in the long run? If the gap closes, we're all losing out.
     
    #45 Nexic, Dec 14, 2011
    Last edited: Dec 14, 2011
  6. bantamcitygames

    Administrator Original Member Indie Author Greenlit

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    This is the best thing I've heard... ever
     

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