I have a question about taxes...

6 replies
Hey there Warriors!

I have a question regarding taxes and I hope there's someone here that can help me.

So, let's say that I'm not a business owner, just a simple individual that has created an info product and launched a website. I've sold a lot of copies totalling around $1000 USD in earnings that are sitting on my PayPal right now. Now I'd like to move that money to my bank account... I know that I'll have to pay some PayPal fees and bank fees, but what about the taxes? I live in EU. Are you required to pay taxes if you're an individual selling your own stuff online? And how do you do that? Is that automatically deducted from your bank transfer or do you have to fill any forms?

Regards,

~ Dave
#question #taxes
  • Profile picture of the author agmccall
    Originally Posted by Amazing Dave View Post

    Hey there Warriors!

    I have a question regarding taxes and I hope there's someone here that can help me.

    So, let's say that I'm not a business owner, just a simple individual that has created an info product and launched a website. I've sold a lot of copies totalling around $1000 USD in earnings that are sitting on my PayPal right now. Now I'd like to move that money to my bank account... I know that I'll have to pay some PayPal fees and bank fees, but what about the taxes? I live in EU. Are you required to pay taxes if you're an individual selling your own stuff online? And how do you do that? Is that automatically deducted from your bank transfer or do you have to fill any forms?

    Regards,

    ~ Dave
    Contact an accountant or do a search for a forum that focuses on accounting and/or taxes

    al

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  • Profile picture of the author Alex The Lion
    It's definitely not automatically removed by the bank and you need to notify your government. Contact or visit your local government's website for more information. Each country will have a different method for notifying the tax office such as a self assessment tax return.

    For more detailed information, contact an accountant.
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  • Profile picture of the author ChrisBa
    Originally Posted by Amazing Dave View Post

    Hey there Warriors!

    I have a question regarding taxes and I hope there's someone here that can help me.

    So, let's say that I'm not a business owner, just a simple individual that has created an info product and launched a website. I've sold a lot of copies totalling around $1000 USD in earnings that are sitting on my PayPal right now. Now I'd like to move that money to my bank account... I know that I'll have to pay some PayPal fees and bank fees, but what about the taxes? I live in EU. Are you required to pay taxes if you're an individual selling your own stuff online? And how do you do that? Is that automatically deducted from your bank transfer or do you have to fill any forms?

    Regards,

    ~ Dave
    I'd say you like need to pay taxes, but you really need to consult an accountant.
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  • Profile picture of the author onSubie
    You need to declare it as income. Whether it is taxable depends on your total income and tax laws for your country.

    This would be paid/reported when you file income taxes for your country according to your local tax laws.

    As mentioned, seek advice from a financial professional if you are unsure about income tax laws for your country.
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  • Profile picture of the author yakim1
    The UK is part of the European Union and they have a VAT tax. You are suppose to collect the VAT tax that is relevant to where the buyer lives. This could cause the price of your product to increase in price over 25%.

    VAT is Value Added Tax

    You are responsible for collecting this tax then paying it to the country from which the buyer resides. There are different organizations that you pay the tax to and they will get it to the correct country.

    What really makes this tax hard to calculate is that each country has a different VAT tax. It is calculated from where the buyer lives instead of where the seller lives. It can also be collected in certain currencies and that makes choosing the organization to which you pay the taxes to more complicated to choose the best one because you are charged to transfer from one currency to another making the cost go higher.

    We don't collect the VAT tax yet in the USA because there has not been a law passed yet forcing Americans to pay this VAT tax.

    There are very few affiliate networks that collect the VAT tax. I think ClickBank may be the only one that has this capability. I'm not sure because I don't use ClickBank. This is just something I may have heard. You would have to ask ClickBank to be sure.

    So you are now required to know where a person lives when they purchase your products so you can charge the correct VAT tax amount. So if you have a $100 product the price would need to be increased from $100 tob$117 up to $133.

    I believe you are the one required to collect the tax. Maybe ClickBank does this as a service for you. Again I don't know just how this works.

    I hope this is helpful,
    Steve Yakim
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    • Profile picture of the author rjd1265
      Not sure about your area but in the states if your paypal makes more than $600 they send you a 1099. they also send this to the IRS so yes, you would need to pay taxes on it.

      This is for products/services.....not sure how they work it if sold a personal item such as a car or boat and the buyer sent money via paypal. that may work different in that case.
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