Iwasawa 🌟 (one hikari of too many)
(replying to Iwasawa 🌟 (one hikari of too many))
@kanongil @0xabad1dea some further context as I, not a lawyer, understand it, about Sweden:
• Donations are not covered by VAT, because there's no exchange going on. you know, “money can be exchanged for good and services”. VAT is on sales.
• Donations are taxable income if you're a creator of some sort. Gifts are tax-free, but this type of donation isn't considered as a gift.
• If I'm only taking donations, not selling goods or services, it's easier to argue I don't have a “profit motive” and a lot less requirements apply to me. Patreon charging VAT has unsettling implications therefore.
Gil Pedersen
(replying to Iwasawa 🌟 (one hikari of too many))
@hikari @0xabad1dea per their FAQ, they are the B2C contact point and are responsible for the patron VAT. There is no VAT for payments to creators since you are a dealing with the US entity. https://support.patreon.com/hc/en-us/articles/360047578411-EU-Creator-Frequently-Asked-Tax-Questions
Iwasawa 🌟 (one hikari of too many)
(replying to Gil Pedersen)
@kanongil @0xabad1dea ohh so that's why they don't pay VAT… that makes sense.