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How (and what) do I charge for sales tax / VAT?

Posted: Wed Dec 11, 2013 10:23 pm
by pallan
When launching my project on Kickstarter, do I pay the sales tax / VAT to the country my company is registered in (if I have a company) or where I'm residing? And who do I charge it to?

For example, if I'm a Canadian and launching it from Canada, do I charge the Canadian rate of sales tax, and only charge it to Canadians?

Or if I'm in the UK and launching from there, who do I charge VAT to? All EU residents? And do I only charge the UK rate of VAT, or do I need to charge different rates for each country?

Also, does Kickstarter allow you to charge different prices depending on a buyer's place of residence?

Thanks everyone!

Re: How (and what) do I charge for sales tax / VAT?

Posted: Thu Dec 12, 2013 5:46 pm
by sbriggman
This thread might be helpful: "VAT / Sales tax on pledges?" vat-sales-tax-on-pledges-t1027.html

I am not a lawyer or an accountant, so my advice is not in league with these individuals (would recommend contacting someone who has expertise in this field).

I think you need to pay business taxes to the location where your business is registered and where your business has an office or conducts business activities. I also think you would need to pay personal income tax (if you draw any income personally from the campaign) where your place of residence is.

Would recommend checking out the articles in the thread I linked to above.