Taxing marketplace sales
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This is a question for other marketplace developers like me. Is anyone familiar with tax law when it comes to taxing revenue from marketplace sales?
Okay then i have to go to a tax consultant in my country :)
As far as UK tax is concerned, I have to declare marketplace sales in my accounts and get taxed on them. It doesn't matter if I earned the money outside the UK or if I leave it in a non-UK bank account. As far as the tax man is concerned, I am a UK resident so pay UK tax on my income.
I expect a clever tax accountant could find me ways round that to pay zero, but the overhead of doing so would cost much more than simply paying the income tax.
I long for the day where marketplace sales reach a level that forces me to become a tax exile ;-)
I expect a clever tax accountant could find me ways round that to pay zero, but the overhead of doing so would cost much more than simply paying the income tax.
I long for the day where marketplace sales reach a level that forces me to become a tax exile ;-)
Maybe this day will coming by the introduction of a new licensing model for version 9 :)
@fabianbitter
You are in Germany, so your Marketplace revenues are registered as "Einkommen" that needs to be funneled through the standard Tax process. Selling Software in generally considered "Gewerbe", even though many call themselves freelancers. In German Tax Law, you owe your taxes to the state in which your "life happens" ("Lebensmittelpunkt") so if you became a digital nomad, you could choose your place of taxation freely. If you have a permanent address here, you need to declare all your income here.
As Portland Labs are in the US, they handle VAT (USt.) differently, Prices are usually shown without VAT (because it can be very different state to state) which means that your income that is paid by a US company (PL) does not contain VAT, so you do not need to pay VAT off that income. But this needs to be declared clearly on your bills/payments.
It is very risky to do your taxes yourself in Germany, so I suppose you've got an accountant here anyway.
All the best!
You are in Germany, so your Marketplace revenues are registered as "Einkommen" that needs to be funneled through the standard Tax process. Selling Software in generally considered "Gewerbe", even though many call themselves freelancers. In German Tax Law, you owe your taxes to the state in which your "life happens" ("Lebensmittelpunkt") so if you became a digital nomad, you could choose your place of taxation freely. If you have a permanent address here, you need to declare all your income here.
As Portland Labs are in the US, they handle VAT (USt.) differently, Prices are usually shown without VAT (because it can be very different state to state) which means that your income that is paid by a US company (PL) does not contain VAT, so you do not need to pay VAT off that income. But this needs to be declared clearly on your bills/payments.
It is very risky to do your taxes yourself in Germany, so I suppose you've got an accountant here anyway.
All the best!
There's no straightforward answer really