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Patreon handles EU VAT and similar digital VAT for its users. Otherwise each and every one of those donations will need to be handled and filed by the creators.
by unity1001 4y ago
Patreon handles EU VAT and similar digital VAT for its users. Otherwise each and every one of those donations will need to be handled and filed by the creators.
To illustrate how bad it can get - in EU VAT, if your yearly sales are over 30,000 Euros (it may even be 10k, I don't know the latest limit), you have to charge your customers/patrons the appropriate tax rate of the country that they are in. And if you don't, you may end up having to deal with the tax authority of that particular country.
People take this lightly, but as many are finding out, its serious business.
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And - fraud is not handled by Paypal. Any chargeback, fraud, refund is your responsibility. You can even get your Paypal suspended for those reasons.
- busterarm 4y agoAnd every other payment processor modeled VAT without raising their fees. Your software developers only need to model it once and make updates. You don't have armies of humans dealing with this to necessitate 10-20% fees. And no payment processor or retailer deals with fraud. They all suspend your accounts for chargebacks. The fee is the built in fee to cover _losses due to fraud_, not for "handling" it.