Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Quick Links


Categories

In this Discussion

› › All these VMs, are we supposed to pay taxes ?
New on LowEndTalk? Please Register and read our Community Rules.

All new Registrations are manually reviewed and approved, so a short delay after registration may occur before your account becomes active.

All these VMs, are we supposed to pay taxes ?

quddusquddus Member
in General

If we are living in EU and buying something from inside the EU from do have to pay the taxes but what if we buy a VM from USA or ASIA or Australia do we still have to pay their local taxes ?

Comments

  • netomxnetomx Moderator, Veteran

    Nope

  • erhwegesrgsrerhwegesrgsr Member

    Only if you are in the same state as the company is registered in and if that is a state law. But most states don't take tax over virtual products. And there's always income tax ;-)

  • rds100rds100 Member

    You have to pay the VAT in your own country since the other company didn't charge you with VAT.

  • BlueVMBlueVM Member

    The way our taxes work is quite interesting:

    • We don't have to charge our clients sales tax since we're selling intangable items (Colorado State tax code).
    • We don't have to pay federal taxes on business income. (S-Corp)
    • We only on dividends (IE profits we collect) and that's counted as capitol gains, which is about a 20 - 30% tax dependent on bracket.
    • I can pay myself a salary outside of the capitol gains for as much as I like. I have to pay standard income tax on that.

    So no, our clients don't pay taxes and we don't pay taxes unless we make $$,$$$+.

  • quddusquddus Member

    @rds100 said:
    You have to pay the VAT in your own country since the other company didn't charge you with VAT.

    How to do that.................. ?

    I believe company has to charge end users but not the companies while doing business inside the Europe

  • SplitIceSplitIce Member, Host Rep
    edited June 2013

    No sales tax (GST) in Australia if your gross business income are sub $75k a year (unless you voluntarily register).

  • ComfortVPSComfortVPS Member

    Not need to pay taxes

  • trewqtrewq Administrator, Patron Provider

    @SplitIce said:
    No sales tax (GST) in Australia if your profits are sub $75k a year (unless you voluntarily register).

    Actually it's your revenue with some exclusions but the $75k figure is correct.

    Your GST turnover is your gross business income (not your profit), excluding any:

    GST included in sales to your customers

    sales that are not for payment and are not taxable supplies (for example, some supplies to associates)

    sales not connected with a business that you carry on

    input taxed sales you make

    sales not connected with Australia.

    From http://www.ato.gov.au/businesses/content.aspx?menuid=0&doc=/content/20724.htm&page=5#P174_7741

  • SplitIceSplitIce Member, Host Rep

    @trewq that will teach me for making a simplification. Corrected my incorrect comment. Thanks.

  • trewqtrewq Administrator, Patron Provider
    edited June 2013

    @SplitIce said:
    trewq that will teach me for making a simplification. Corrected my incorrect comment. Thanks.

    Haha no problem.

  • asterisk14asterisk14 Member

    quddus - YOU don't have to pay THEIR taxes. It's just like when you got on holiday and buy something 'duty' (tax) free.

  • concerto49concerto49 Member

    Yeah AU customers have to pay GST. Quite a disadvantage for us actually.

  • quddusquddus Member

    @asterisk14 said:
    quddus - YOU don't have to pay THEIR taxes. It's just like when you got on holiday and buy something 'duty' (tax) free.

    Very nice example
    thanks for the explanation.

Sign In or Register to comment.