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Germany, IANAL but was curious because I've seen it differently here: "donations" that are clearly not tax deductible, the only real test for that wird in some
by treffer 4y ago
Germany, IANAL but was curious because I've seen it differently here: "donations" that are clearly not tax deductible, the only real test for that wird in some sense.
Lawyer Google tells me donations are just money gifts. Some organizations that are approved can hand you a recipe that allows you to tax deduct it. And I think those organizations also don't need to pay taxes on it.
TIL. Not sure how well that resonates in Sweden though.
- mysterydip 4y agoIn the US a 501(c)(3) organization is considered "non-profit" and gifts to them are tax-deductible. I worked at one once and we had a paper we used at stores to pay no sales tax.
- HeyLaughingBoy 4y agoYou are correct on both points, but you're drawing a connection where one doesn't necessarily exist. When you donate to 501(c)(3) corporation, you can deduct the donation against your taxes and the organization does not have to pay taxes on your gift. The paper you show the store is either a "tax exempt" certificate or a reseller certificate. In the case of your non-profit, it's probably a tax-exempt certificate, but other types of businesses can avoid paying sales taxes on items they purchase if they are for resale. I know this may seem overly pedantic, but taxes are an area where there is a lot of misinformation online, so I'm trying to help reduce any confusion the post may have cuased.
- mysterydip 4y agoCorrect, it was a tax exempt certificate. I wasn't trying to say they were related, but I can see how that would have been implied from the text. Thanks for the clarification!