ScriptFodder Sellers and VAT
No
So basically.
- I use a VAT number and have to do paper work while paying the %
- No paper work
We will switch everyone over to a commission based system instead of subscriptions. With that system EU customers will be handled automatically by us on your behalf, I was kinda not expecting you to seriously want to register a company, VAT and VATMOSS for relatively small amounts of sales.
ok i belive its better for all devs here :)
I'm mostly just curious tbh
I am completely against this as it screws over bigger developers, people who actually trusted this website, people like me, whos only income is from this website.
Ontop of that it screws over people who already bothered to setup their personal companies or buisnesses, me aswel.
I have my taxes already fully accounted for. I pay total of 24% to the countries handling insititution. And since I just now bought an appartement I got myself into some debt aswel. 30% of all of my sales is a hell alot more than 15 dollars. Even if it would be 5-10% it will still be hundreds of dollars from my end instead of the 15 I used to pay.
Instead of paying VAT I have set myself up an individual buisness of a programmer. I pay around 24% in total taxes. Which is ALOT, but its not only VAT I have to deal with. Which VAT accounts for that aswel. I will have to pay the 24% no matter this generalized VAT system or not.
There really should be an alternative for people who already have companies or buisnesses. Worked my arse off to set one up, had way too many trips to the tax office.
So basically now I would have to pay the SF tax + 24% in my coutries tax. This is simply insane.
We will switch everyone over to a commission based system instead of subscriptions
What
no
I don't want you to take a % of what i earn
By[ExtReM] Lapinat 13th of July 2016 20:37:17
WhatnoI don't want you to take a % of what i earn
Based on how much you've personally made it would literally be more profitable for you. And it would also keep what you're selling legal...
Edited
Byfreemmaannat 13th of July 2016 20:24:25
So basically now I would have to pay the SF tax + 24% in my coutries tax. This is simply insane.
I'm discussing this in private with you currently, but I'll make a post here too.
Sellers will make the same they do currently just minus 5-10% per sale (bigger developers get a reduced commission fee as previously mentioned). VAT is a per buyer per country tax that HAS to be paid by your buyer if they reside in an EU country, the rates can vary from anything between 15-25%, this will be added onto the total price of a sale for them and then be paid by us to their local tax authority.
All money sellers get from this is then completely theirs and only affected by their local income tax laws which is a tax applicable on any earnings you receive anyway.
Ok, what about the UK though, we are leaving the EU soon, does this mean we will have to pay a different % in future?
-snip-
ByLunaversity #VoteHeavyat 14th of July 2016 00:35:20
either I'm not correctly hearing you, or I'm voting for Donald Trump.Why do bigger developers get reduced cuts, don't you think that should be the other way around? Or instead just keep it equal. If people that make more than me get reduced tax that's really unfair.
Maybe because 10% from 100 USD is 10 USD, but 10% from 1000 USD is 100 USD? Matt wants so 10% from 100 USD is 10 USD, but 5% from 1000 USD is 50 USD.
-snip-
thx poll man for clearing it up
To all those unsure
If you are just starting and you don't make much - this will work good for you, as dev sub will be way cheaper for you (sometimes even 10 times cheaper).
If you are a big seller (or even one of top sellers) - you'll pay more for dev sub, in some cases even 2 times more - but that extra money goes to SF and it'll be spent to fund Marcus' and Matt's pay, so they can keep working on updates.
Just do the math really..
Just to clarify, what are we classifying as a 'big seller' as of this minute?
ByImperial Studiosat 15th of July 2016 01:04:14
Just to clarify, what are we classifying as a 'big seller' as of this minute?
People that have 3 digits I'd suppose.
Probably would start decreasing from $100 and go from there.
The commission fee would be taken out of what a user pays for the product, but what about VAT? Would that be added on, on top of what they pay, or be part of what they pay?
What I'm saying is:
Is it like $3.00 + 10% VAT (Example) = $3.30 | Seller gets $3 minus commission. The added $0.30 goes to tax authorities.
OR
$3.00 + 10% VAT = $3 | Seller gets $2.70 (Tax deducted) minus commission.
Apologies for my poor explanation, hopefully it's understandable.
ByImperial Studiosat 15th of July 2016 01:53:50
The commission fee would be taken out of what a user pays for the product, but what about VAT? Would that be added on, on top of what they pay, or be part of what they pay?What I'm saying is:Is it like $3.00 + 10% VAT (Example) = $3.30 | Seller gets $3 minus commission. The added $0.30 goes to tax authorities.OR$3.00 + 10% VAT = $3 | Seller gets $2.70 (Tax deducted) minus commission.Apologies for my poor explanation, hopefully it's understandable.
Still discussing that - but the way I want to do it and the way pretty much every other marketplace does it is to add tax onto the listing fee and not take it away from the seller
It's easier to have everything out front so there's no surprises, so making it part of the display may be better.
We will also require every developer to grant us third-party refund access to transactions that are made through us, so you can actually refund transactions properly due to them being sent first to you, then VAT+x% to us. Otherwise you'd only be able to refund what you received, not also what we received.
This access granting would be pretty much automatic(would only require you to sign in to PayPal and consent), but we'll redirect all developers to a page explaining why when the commission system launches.