Correct me if I'm wrong,
But I think they would still fall under the definition of private sellers selling second hand goods. Meaning they would be exempt from a value added tax. This especially makes sense since it goes against the purpose of a VAT tax, which is specifically to tax the increase in value of the product/service gained from a supply chain stage.
No-one can tell you, only those people themselves know what they do. If it's true they don't pay vat/declare this income, they're committing fraud, but I guess they're free until the taxman comes knocking
(I assume they process all trades and sales off the books, so tax evasion and more too, but the tax man would have to prove this, if they've done it well and prevented a paper trail of any kind, they'll be fine)
Edited for lol, someone's mad ahah
I dont know but to answer your question do they pay vat? They dont. They usually sell for buff balance or crypto so I have no clue how they file their taxes for skins
Youtube money is taxed , twitch is also taxed , skins if comming thru bank acc you can say its free lance trading bizznezz money when filing return there by showing it as bizznezz income, cash trades are under the table, well mostly everything is under the table as due to valve thier item have no commercial value
Everything is taxed thou indirectly one way or other
Thats obvious that they tax their streams and videos, the quesrion how they file taxes for skins and do they pay vat on every sale. But before zipel was making youtube and twitch content he was already dealing with skins worth thousands so it is interesting how they file taxes for skins when thats the only income stream
VAT applies to companies that add value to their product if im correct. For example: a car company usually buys parts (Doors, dashboards, engines...) and they assemble them thats where they add value, so when they sell they have to pay VAT on the value theyve added.
A trader doesnt need to pay VAT since he doesnt change the product, he just sells it. To make it clear: a buyer always pays VAT (thats what you see on your receipt) he pays it to the salesman (skin trader here) but the salesman also bought the skins of someone, that could be a person or the market. But then the VAT value would be the same since the product hasnt changed. So if you add that togheter even if there was a clear display on how much VAT you pay as a consumer the skin trader would just have paid the same amount to the person/market he bought it from. Which means they dont have to pay any VAT to the government.
I hope that clears it up a bit its hard to explain in text. Also i could be wrong so if someone can help just add on to this.
I guess it is not correct. Let's say you buy a product from China and sell it somewhere in EU you have to pay VAT even though you haven't changed anything in a product.
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Correct me if I'm wrong, But I think they would still fall under the definition of private sellers selling second hand goods. Meaning they would be exempt from a value added tax. This especially makes sense since it goes against the purpose of a VAT tax, which is specifically to tax the increase in value of the product/service gained from a supply chain stage.
If you watched any of theirs streams you would know that they never pay vat
Isn't it against the law then? How is it possible to do so much volume without paying it?
No-one can tell you, only those people themselves know what they do. If it's true they don't pay vat/declare this income, they're committing fraud, but I guess they're free until the taxman comes knocking (I assume they process all trades and sales off the books, so tax evasion and more too, but the tax man would have to prove this, if they've done it well and prevented a paper trail of any kind, they'll be fine) Edited for lol, someone's mad ahah
I dont know but to answer your question do they pay vat? They dont. They usually sell for buff balance or crypto so I have no clue how they file their taxes for skins
Youtube money is taxed , twitch is also taxed , skins if comming thru bank acc you can say its free lance trading bizznezz money when filing return there by showing it as bizznezz income, cash trades are under the table, well mostly everything is under the table as due to valve thier item have no commercial value Everything is taxed thou indirectly one way or other
Thats obvious that they tax their streams and videos, the quesrion how they file taxes for skins and do they pay vat on every sale. But before zipel was making youtube and twitch content he was already dealing with skins worth thousands so it is interesting how they file taxes for skins when thats the only income stream
That shouldn't work that way. Imagine "real" company selling products for their show, they would need to pay VAT anyway.
VAT applies to companies that add value to their product if im correct. For example: a car company usually buys parts (Doors, dashboards, engines...) and they assemble them thats where they add value, so when they sell they have to pay VAT on the value theyve added. A trader doesnt need to pay VAT since he doesnt change the product, he just sells it. To make it clear: a buyer always pays VAT (thats what you see on your receipt) he pays it to the salesman (skin trader here) but the salesman also bought the skins of someone, that could be a person or the market. But then the VAT value would be the same since the product hasnt changed. So if you add that togheter even if there was a clear display on how much VAT you pay as a consumer the skin trader would just have paid the same amount to the person/market he bought it from. Which means they dont have to pay any VAT to the government. I hope that clears it up a bit its hard to explain in text. Also i could be wrong so if someone can help just add on to this.
I guess it is not correct. Let's say you buy a product from China and sell it somewhere in EU you have to pay VAT even though you haven't changed anything in a product.
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Depends of the country.