OT: Question for those of you who sell your plugins - sales and VAT taxes

DSP, Plug-in and Host development discussion.
Fender19
KVRist
235 posts since 30 Aug, 2012

Post Wed Mar 20, 2019 4:44 pm

I know this isn't a Tax forum, but can those of you (in the USA) who sell your plugins on-line tell me what the requirements are for collecting Sales and VAT taxes?

I have purchased LOTS of plugins on-line and have never been charged sales tax on any of them. But now that I am selling plugins I'm being told I may need to collect and report interstate sales tax - and maybe even VAT taxes for the EU! :-o

Any info or links appreciated! Thank you.

lfm
KVRAF
4962 posts since 22 Jan, 2005 from Sweden

Re: OT: Question for those of you who sell your plugins - sales and VAT taxes

Post Wed Mar 20, 2019 7:06 pm

As a customer only - I've seen some sellers let payservice like DigitalRiver do that part, so suddenly checking out - there is sales tax. Then you don't have to worry about it. Depending on customers card they apply the correct taxes and the rest.

As european citizens we are acustomed to this all the time.

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Zaphod (giancarlo)
KVRAF
2437 posts since 23 Jun, 2006

Re: OT: Question for those of you who sell your plugins - sales and VAT taxes

Post Wed Mar 20, 2019 8:31 pm

Yes for Europe you need it. It is pretty complex to do. It's "moss"
Search it in his forum

Fender19
KVRist
235 posts since 30 Aug, 2012

Re: OT: Question for those of you who sell your plugins - sales and VAT taxes

Post Thu Mar 21, 2019 8:22 am

Zaphod (giancarlo) wrote:
Wed Mar 20, 2019 8:31 pm
Yes for Europe you need it. It is pretty complex to do. It's "moss"
Search it in his forum
The more I learn about this the more disturbing it becomes. How can the EU demand that businesses in other countries maintain bookkeeping and collect and remit taxes for the EU? What international law enforces this? Does the EU reciprocate and submit sales taxes to USA on sales EU businesses make to the USA?

IMO by accepting this we are opening the doors for every other state and country in the world to adopt similar taxes. And when we reach a point where we are spending 100% of our time bookkeeping taxes for the whole world our businesses will be ruined.

Bad news folks. Stand up. We need to stop this.

marzelli
KVRist
46 posts since 13 May, 2018

Re: OT: Question for those of you who sell your plugins - sales and VAT taxes

Post Thu Mar 21, 2019 8:30 am

Fender19 wrote:
Thu Mar 21, 2019 8:22 am
Bad news folks. Stand up. We need to stop this.
yes. Start by releasing your plugins for free :lol: This whole payment and VAT thing is the reason why many use services like share it, fastspring and so on. You only have to care about them then.

Fender19
KVRist
235 posts since 30 Aug, 2012

Re: OT: Question for those of you who sell your plugins - sales and VAT taxes

Post Thu Mar 21, 2019 10:20 am

marzelli wrote:
Thu Mar 21, 2019 8:30 am
Fender19 wrote:
Thu Mar 21, 2019 8:22 am
Bad news folks. Stand up. We need to stop this.
yes. Start by releasing your plugins for free :lol: This whole payment and VAT thing is the reason why many use services like share it, fastspring and so on. You only have to care about them then.
My point about "stand up" is that the EU is just THE START of this. Eventually every other country around the world will jump on the bandwagon. It will be a global accounting nightmare that even Fastspring and Amazon won't be able to handle.

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thecontrolcentre
KVRAF
23841 posts since 27 Jul, 2005 from the wilds of wanny

Re: OT: Question for those of you who sell your plugins - sales and VAT taxes

Post Thu Mar 21, 2019 10:29 am

If you don't want to collect taxes for the EU then don't sell your products in the EU.

Fender19
KVRist
235 posts since 30 Aug, 2012

Re: OT: Question for those of you who sell your plugins - sales and VAT taxes

Post Thu Mar 21, 2019 10:55 am

thecontrolcentre wrote:
Thu Mar 21, 2019 10:29 am
If you don't want to collect taxes for the EU then don't sell your products in the EU.
Do you? If so how/what means are you using to handle the VAT taxes?

Fender19
KVRist
235 posts since 30 Aug, 2012

Re: OT: Question for those of you who sell your plugins - sales and VAT taxes

Post Fri Mar 22, 2019 7:02 am

Global Taxation is an issue in it's infancy that will likely get worse. The US Department of Commerce has taken interest in my concern and I have a telecon with their Washington D.C. Office on Monday morning. :tu:

In the meantime, I have signed up with Fastspring to handle the immediate concern with VAT taxes.

Thank you all for the suggestions.

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