What taxes font seller have to pay?

Alex Visi
Alex Visi Posts: 185
in Type Business
Could someone please explain what taxes one have to pay for font selling? Sure, different countries have different laws, but I suppose the general idea is similar enough in the Western world.
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Comments

  • Kent Lew
    Kent Lew Posts: 968
    It will vary quite a bit depending upon your jurisdiction and governing law.

    If you’re selling retail directly to consumers, you may be responsible for collecting local sales tax (this is an extremely fluid situation in the States with the recent Supreme Court ruling in the Wayfair case) or VAT or GST.

    As a business, you will be subject to whatever income taxes apply where you live. Rules governing this, of course, vary widely.

    You should consider consulting a tax accountant, if you have specific questions.
  • John Hudson
    John Hudson Posts: 3,319
    As Kent said, the situation will vary quite a bit depending on jurisdiction. In general, what will matter in terms of collecting and remitting taxes on individual license sales will be the place of residence or business of the customer, and whether software is subject to local/provincial/state sales tax, and national GST/VAT. So, for example, if we're selling to customers outside Canada, we don't have to charge GST, and if we're selling to customers inside Canada but outside British Columbia we don't have to charge the BC sales tax, but if we're selling to customers in BC then we have to charge both.

    Obviously, what one wants in a electronic payment system is something that automates this based on what address the customer provides.

    Definitely discuss this with a tax accountant in your jurisdiction.
  • Dave Crossland
    Dave Crossland Posts: 1,433
    Be in Ireland?
  • Max Phillips
    Max Phillips Posts: 474
    Well, I'm in Ireland. What about it?
  • Dave Crossland
    Dave Crossland Posts: 1,433
    > What about it?

    Medium corporation tax. The global average is about 22%, and Ireland is 12.5%. 

    If you go "offshore" to a tax haven, you can have a 0% corporation tax, but you'll often pay remittance taxes when money leaves the g8 countries (where the bigger customers are) and enters a low tax jurisdiction; and I expect you'd face scrutiny if you try to transfer it back in. 

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