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  1. #1
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    Should I pay taxes myself selling stuff via Envato?

    Found these documents on the Dutch taxes forum. Is this true?
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    Being a freelancer (based in EU) and selling my stuff via Envato I have to pay all taxes in EU myself? Really?! What now. EU tax authorities will make me pay for all the project I've done since 2013?? Any info on this subject?

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  3. #2
    Unpaid WDF Intern TheGAME1264's Avatar
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    I'm not a tax expert, and this is really beyond the scope of web forums since it's a tax issue, but the short answer is yes, freelancers do have to pay taxes on the things they sell depending on their jurisdiction. That's the bad news.

    The good news is that, depending on your jurisdiction, you may be able to claim back certain taxes such as sales taxes that you've paid that you can reasonably associate with the revenue that you've generated...including for things that you use in your home, such as your Internet, to generate revenues. For example, I live in Ontario, Canada. I'm over a certain revenue threshold ($29,500/year is the threshold) so I have to charge and remit Harmonized Sales Tax (HST) to my Canadian customers. This sucks, because it turns me into a glorified volunteer tax collector for the provincial and Canadian federal governments. However, most of my revenues are either exempt from HST (because they're based on say Adsense, who charges/remits HST when they sell Adwords to customers) or because I do business with American and European clients. That means the amount I charge and remit doesn't equate to 13% of my revenue...it actually equates in my particular case to roughly 3%.

    This is where the good news comes into play. Even though I don't charge/remit HST to my American/European customers, I still generate expenses in Canada that are used to generate revenues for my American and European customers. Those expenses are charged and remitted on my behalf to me, and the HST laws state that I can claim those expenses against my revenues when I file the HST portion of my return. In my particular case, the expenses are such that I generate a small credit each year (enough to cover the time it takes to file) and the government direct deposits the money to my account each year.

    Notice how I'm only speaking to sales tax and not income tax. That's a separate animal. If you're making money off of selling stuff on Envato, you're going to have to pay tax on it because "the government built that" (side note: screw you, Barack Obama, you did not build that). Now, you can use the same logic with income tax that you can with sales tax i.e. income net of expenses. But you will need to hang onto your expense receipts and be able to justify them.

    That's about as good an answer as you're probably going to get from a web forum. The best advice any of us can give you is either to study your tax laws of your jurisdiction to figure out what you are/are not on the hook for, or have an accountant do your taxes for you. I personally prefer to do my own because they're not excessively complex and because I built an Excel workbook whereby I enter in the data and it calculates all the appropriate values for me so that I just have to plug them into my tax forms. But that's me. That's not you. You're going to have to do you in this case.
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  4. #3
    Senior Member Vapr_Arts's Avatar
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    As a freelancer in California, I was told by an accountant that after I make $300 I was required to fill out forms and could pay taxes. Not sure how it is where you are, but that low of an amount surprised me! You may be surprised as well. Personally I would contact an accountant or like Game said, study the laws yourself.

    Take the time to do it right, right now, rather than dealing with the repercussions of not.


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