We are in talks to have the same kinds of limits in France.
I don't know about Spain but here it is essentially a need for people in charge of the "digital economy" to somehow feel useful and show that they are "regulating" something. In this case they must feel more justified because it circumvents traditional actors (i.e. banks) and involves money.
It is kind of amusing because this is a sector where most EU countries enjoyed a more liberal regulatory context before startups started to spawn in the US. And now that there is a boom, regulations are added to prevent it from developing, effectively removing any possible european competition to US companies in the space.
I don't know if this will affect the likes of Kickstarter though, if they don't have any physical presence in Spain I don't see how the government is going to know about it.
I don't know if this will affect the likes of Kickstarter though, if they don't have any physical presence in Spain I don't see how the government is going to know about it.
Well, obviously they will known when you receive your funds for your project, else you will be tax avading if you don't report it.
Obviously if you are in need of a significant crowdfunding campaign you'll probably have to relocate to a friendlier place in the EU, at least temporarily (I guess if you are looking for more than 1M euros it might be worth it).
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.
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.
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 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.
Comments
We are in talks to have the same kinds of limits in France.
I don't know about Spain but here it is essentially a need for people in charge of the "digital economy" to somehow feel useful and show that they are "regulating" something. In this case they must feel more justified because it circumvents traditional actors (i.e. banks) and involves money.
It is kind of amusing because this is a sector where most EU countries enjoyed a more liberal regulatory context before startups started to spawn in the US. And now that there is a boom, regulations are added to prevent it from developing, effectively removing any possible european competition to US companies in the space.
I don't know if this will affect the likes of Kickstarter though, if they don't have any physical presence in Spain I don't see how the government is going to know about it.
Well, obviously they will known when you receive your funds for your project, else you will be tax avading if you don't report it.
I was thinking of the backers.
Obviously if you are in need of a significant crowdfunding campaign you'll probably have to relocate to a friendlier place in the EU, at least temporarily (I guess if you are looking for more than 1M euros it might be worth it).
I don't think they care about the backers.
Are you implying the government sees funding money as taxable ? If so, on what basis ? Incomes ?
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.
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.
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.
link showing DanBC is indeed correct (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.
that's for parents safety
Yeah I know UK doesn't, that's why I said "most" EU countries, and not all of them.
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.