6 ms·

Are you implying the government sees funding money as taxable ? If so, on what basis ? Incomes ?

gambiting 13y ago
To be honest, in EU most things are taxable. Most EU countries will tax you on your lottery winnings, which to me is just weird and unacceptable,but this is how things work here.
- DanBC 13y ago
  The trick is to know when the tax needs to be paid and what it needs to be paid on. This is why accountants are important. They know the system and paperwork and words; they know how you can pay tax in one form cheaper and later instead of expensive and now. I don't think UK taxes lottery winnings.
  - polymatter 13y ago
    link showing DanBC is indeed correct (http://www.national-lottery.co.uk/player/p/help/playinginstore/faqs.ftl http://www.national-lottery.co.uk/player/p/help/playinginsto...) though UK lottery winnings will still be taken into account for inheritance tax if the winner dies within 7 years.
    - ArenaSource 13y ago
      that's for parents safety
  - gambiting 13y ago
    Yeah I know UK doesn't, that's why I said "most" EU countries, and not all of them.
- nknighthb 13y ago
  I believe you've got it backwards. The EU countries that don't tax lottery winnings are actually members of a pretty small club. Most of the world does tax lottery winnings.
PeterisP 13y ago
Of course it's taxable - if you give someone $20 for their project and get a t-shirt in return, then that is taxable just as any other deal, and even if there is no profit/taxable net income, then VAT applies for the transaction. If crowdfunding was like purchase of shares (which it isn't), then it wouldn't be taxable initially, but would have a capital gains tax when you sell those shares. Most of the crowdfunding projects are in essence similar to preorders, and thus would be taxable as any other sales - if there are true donation projects, then they'd need to file for nonprofit status to be able to get tax-exempt donations.
- johnchristopher 13y ago
  Thanks.

To be honest, in EU most things are taxable. Most EU countries will tax you on your lottery winnings, which to me is just weird and unacceptable,but this is how things work here.

DanBC 13y ago
The trick is to know when the tax needs to be paid and what it needs to be paid on. This is why accountants are important. They know the system and paperwork and words; they know how you can pay tax in one form cheaper and later instead of expensive and now. I don't think UK taxes lottery winnings.
- polymatter 13y ago
  link showing DanBC is indeed correct (http://www.national-lottery.co.uk/player/p/help/playinginstore/faqs.ftl http://www.national-lottery.co.uk/player/p/help/playinginsto...) though UK lottery winnings will still be taken into account for inheritance tax if the winner dies within 7 years.
  - ArenaSource 13y ago
    that's for parents safety
- gambiting 13y ago
  Yeah I know UK doesn't, that's why I said "most" EU countries, and not all of them.
nknighthb 13y ago
I believe you've got it backwards. The EU countries that don't tax lottery winnings are actually members of a pretty small club. Most of the world does tax lottery winnings.

PeterisP 13y ago

Of course it's taxable - if you give someone $20 for their project and get a t-shirt in return, then that is taxable just as any other deal, and even if there is no profit/taxable net income, then VAT applies for the transaction. If crowdfunding was like purchase of shares (which it isn't), then it wouldn't be taxable initially, but would have a capital gains tax when you sell those shares. Most of the crowdfunding projects are in essence similar to preorders, and thus would be taxable as any other sales - if there are true donation projects, then they'd need to file for nonprofit status to be able to get tax-exempt donations.

johnchristopher 13y ago
Thanks.