Read on TwitterThis is a running documentation of me figuring out how to bill, collect, remit tax as an online course creator
#ODCC1
In EU 
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🇪🇺" title="Flagge der Europäischen Union" aria-label="Emoji: Flagge der Europäischen Union"> tax there& #39;s a concept called & #39;Place of Supply& #39;
You pay tax in the country where your business is based == where sell the product
This does not apply for digital products
In that case you have to pay tax where the customer is based
You pay tax in the country where your business is based == where sell the product
This does not apply for digital products
In that case you have to pay tax where the customer is based
Example:
* I sell online courses
* I have customers in Germany and Ireland
This means:
Add 19% VAT rate to the invoice for German customer
Add 23% VAT rate to the invoice for Irish customer
The VAT table looks as followshttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
* I sell online courses
* I have customers in Germany and Ireland
This means:
Add 19% VAT rate to the invoice for German customer
Add 23% VAT rate to the invoice for Irish customer
The VAT table looks as follows
" title="Example:* I sell online courses* I have customers in Germany and IrelandThis means:Add 19% VAT rate to the invoice for German customer Add 23% VAT rate to the invoice for Irish customerThe VAT table looks as follows https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">" class="img-responsive" style="max-width:100%;"/>
I can solve it as follows:
A) Manually: Create each invoice by hand and have my accountant calculate + remit the tax obligation for each country separately
B) Automatically: Implement a tech solution to take care of it
Wouldn& #39;t it be nice if Option B were easy?
A) Manually: Create each invoice by hand and have my accountant calculate + remit the tax obligation for each country separately
B) Automatically: Implement a tech solution to take care of it
Wouldn& #39;t it be nice if Option B were easy?
Gumroad + Paypal: Does the trick
Pro: Easy to spin up
Con: Paypal& #39;s fees are intransparent and way too high https://twitter.com/artlapinsch/status/1377627087708753921?s=20">https://twitter.com/artlapins...
Pro: Easy to spin up
Con: Paypal& #39;s fees are intransparent and way too high https://twitter.com/artlapinsch/status/1377627087708753921?s=20">https://twitter.com/artlapins...
Paddle: The solution w/ a caveat
Pro: Start-to-finish revenue delivery platform + takes care of tax calc + remittance
Con: Doesn& #39;t seem to integrate with all online course platforms (i.e. Podia++)
Pro: Start-to-finish revenue delivery platform + takes care of tax calc + remittance
Con: Doesn& #39;t seem to integrate with all online course platforms (i.e. Podia++)
Stripe: The big fish but with a recent acquisition
Pro: Integrates with all platforms
Con: Doesn& #39;t support EU VAT calc/remittance yet
My buddy @ChrisSamiullah shared that Stripe acquired TaxJar - Definitely a move in the right direction https://www.indiehackers.com/post/yes-stripe-acquires-taxjar-53db5c21d1">https://www.indiehackers.com/post/yes-...
Pro: Integrates with all platforms
Con: Doesn& #39;t support EU VAT calc/remittance yet
My buddy @ChrisSamiullah shared that Stripe acquired TaxJar - Definitely a move in the right direction https://www.indiehackers.com/post/yes-stripe-acquires-taxjar-53db5c21d1">https://www.indiehackers.com/post/yes-...
My friend @nikwen_de shared this interesting discussion on IndieHackers
It is a comparison between Strip & Paddle https://www.indiehackers.com/post/stripe-vs-paddle-89161b0d5c">https://www.indiehackers.com/post/stri...
It is a comparison between Strip & Paddle https://www.indiehackers.com/post/stripe-vs-paddle-89161b0d5c">https://www.indiehackers.com/post/stri...
Fantastic writeup by @iwootten - he compares
@Stripe
@PaddleHQ
@quaderno
@gumroad https://www.ianwootten.co.uk/2021/02/23/comparing-vat-solutions-for-bootstrapped-uk-businesses/">https://www.ianwootten.co.uk/2021/02/2...
@Stripe
@PaddleHQ
@quaderno
@gumroad https://www.ianwootten.co.uk/2021/02/23/comparing-vat-solutions-for-bootstrapped-uk-businesses/">https://www.ianwootten.co.uk/2021/02/2...
Steven from @goodandprosper as well as @DominicZijlstra pointed me to VAT tax exemption schemes IF sales are below a certain threshold
As a DE sole proprietor it seems that educational product sales below <17.5k are exempt from VAT. https://europa.eu/youreurope/business/taxation/vat/vat-exemptions/index_en.htm">https://europa.eu/youreurop...
As a DE sole proprietor it seems that educational product sales below <17.5k are exempt from VAT. https://europa.eu/youreurope/business/taxation/vat/vat-exemptions/index_en.htm">https://europa.eu/youreurop...
@_karimelk would love to hear from you if you came across this problem + how you/your clients are usually going about it.
