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What all that means is that -
the end is nigh.
I'm EU seller and if I sell to Indonesia, guess it's Indonesia who should enforce something on me (to collect their taxes and transfer back to them) - will they? And there should be some type of agreements. Agreements should be everywhere then. I don't have to pay (most of the) taxes to countries I'm not citizen of.
Hope not, they got more from me this last year than any year I've lived thus far lol
It will happen soon. I see more countries enforcing digital goods tax.
EU started the concept of taxing digital services and requiring all sellers in the world to collect and remit this tax to the EU member states of their EU customers.
In practice, all European companies and large corporates in the world do this now. Smaller companies still ignore it without any problems. It's just not practical (or even possible) for an EU tax office to harass some small shop in some odd corner of the planet, and vice versa for the Indonesian tax office.
But I do see a future where governments agree to cooperate on tax matters like this. It probably will become international law at some point.
This didn't happen yesterday and it still doesn't work as it should, because how the hell would EU reach sellers throughout the world? Whole situation should be handled differently.
So buying from EU providers for people from other countries still won't be taxed. Well, some countries (like Russia) has the requirement to collect VAT for them, but I doubt any EU seller do this (perhaps only major ones).
... through tax treaties and international agreements and all the things governments use in the world to cooperate with each other.
No, it's done correctly and will become more common over time.
Correct. I think a few large hosts like Hetzner collect the Putin tax, but as I said, it's still a lot of laws and not a lot of global agreement yet. But that is changing.
In the EU, for example, every year more companies which are not located in Europe have started to comply. This just started in 2014 (iirc) so it's still relatively new concept.
Then global climate change is far more urgent concern.
And the world peace could also emerge as a side product of these agreements.
It's more complex to get global agreement on climate change because 1. no country wants to hinder their own economy while 2. yielding an advantage to other non-complying countries.
But every country on the planet wants to collect taxes from its citizens. That's why they make tax laws.
But the lack of world peace is because countries have conflicting objectives. This is not true for collecting taxes.
I mean climate is changing faster than the progress of these agreements.
Laws, that apply within their authority.
Well, that's a good explanation, and your country should benefit as a result.
How so?
This means that @logaritse basically has 10% less disposable income to spend, and someone's spending is basically someone else's income, and who says Indonesia knows how to spend money better than OP ?
OP should be really thankful to his country for charging him this small, because he wouldn't get less than 19% anywhere in EU. If he would be citizen of EU. But since he's not, he should skip his provider and buy from EU. And pay 0% taxes.
That's not really an advice. That's grievance for paying shitload of taxes while living here in EU.
Note that I said "should benefit": in a fair and responsible system of taxation, the country (i.e., the country's residents) should benefit as a result of taxation.
Of course, in an unfair and irresponsible system of taxation, the country as whole won't benefit as a result of taxation, unfortunately.
I wanted to leave open whether Indonesia's system of taxation is fair and responsible, or unfair and irresponsible, or somewhere between these two.
I think I'll put "Taxation is fair" in my signature and become troll.
International relations are pretty much ripe for a revisiting of that old fight.
You’re always the hero of your own story and the villain of someone else’s. The older I get, the more relevant that phrase seems to be. That and “history is written by the victors.” They age well.
S corp is passthru. If you're getting taxed at the corporate and personal level and not seeking foreign investments, it may be time to transition your C to S subchapter.
Edit: to be clear you pay both halves via self-employment tax if you don't incorporate. S corp or LLC provides some liability protection as long as you don't pierce the ol' corporate veil. State taxes get collected on sales based upon nexus agreements, for which there are many now for US residents.