The Magic Café
Username:
Password:
[ Lost Password ]
  [ Forgot Username ]
The Magic Cafe Forum Index » » Latest and Greatest? » » Bad News for Anyone Selling Magic ebooks or Downloads (14 Likes) Printer Friendly Version

 Go to page [Previous]  1~2~3~4~5 [Next]
Jamie Ferguson
View Profile
Inner circle
Alba Gu Brŕth
3642 Posts

Profile of Jamie Ferguson
Quote:
On Nov 20, 2014, rasp wrote:
I don't see a problem. Adapt, overcome and bend the rules............. Why not just advertise your product as a hard copy that also comes with a FREE pdf of the same item (for those that can't wait) and what with the postal system the way it is, items get lost Smile

Genius! Love it.
When the chips are down, the duvet is uncomfortable.
Tim Cavendish
View Profile
Inner circle
1308 Posts

Profile of Tim Cavendish
Because if it's advertised as a physical object, the customer will rightfully expect a physical object and can file a dispute or a credit card chargeback if it is not received.
Ray Chelt
View Profile
Inner circle
Changing the world with my
1278 Posts

Profile of Ray Chelt
I'm gutted that every Tom,Dick and Harry that has a magic brain fart may find it harder to sell said fart !!
JoeJoe
View Profile
Inner circle
Myrtle Beach
1910 Posts

Profile of JoeJoe
Another option ... file complaint with the WTO. Since I don't do this to get rich, that'd be the option I'd go for just for the kicks of it.

-JoeJoe
Amazing JoeJoe on YouTube[url=https://www.youtube.com/user/AmazingJoeJoe]
nonvpro
View Profile
Inner circle
1844 Posts

Profile of nonvpro
Wonder how this could happen here in US. Who agreed to this?
JoeJoe
View Profile
Inner circle
Myrtle Beach
1910 Posts

Profile of JoeJoe
If the States have their way, we will have to pay sales tax for each and every state. I don't know what the forms are for VAT and the other states, but if I was required to file the same forms in all of those places that I have to file here in South Carolina ... then I'd be filing 1,848 pages of tax forms per year. And that would only be sales tax, not including property or income tax forms.

In all reality, taxation is a larger threat to the mom-and-pop shops than Wal-mart has ever been or ever will be! Wal-mart can afford to file 1,848 pages of tax forms per year. This only solidifys their dominance and keeps mom-and-pop from being able to compete fairly.

-JoeJoe
Amazing JoeJoe on YouTube[url=https://www.youtube.com/user/AmazingJoeJoe]
Dominic Reyes
View Profile
Inner circle
Got to a gig too early so wrote his
1417 Posts

Profile of Dominic Reyes
Quote:
On Nov 20, 2014, nonvpro wrote:
Wonder how this could happen here in US. Who agreed to this?


I think it's all the result of a soup of trade negotiations to stop Amazon, Starbucks, Google etc from avoiding tax. Those big corporations need to trade outside the U.S so all sorts of deals take place and loopholes get closed. In the process the 'Mom and Pop' stores get hurt, but who cares about that... On the plus side, Each country stands to make billions from the TAX agreement, and we can all benefit from that..

I do hate that the online corporations dodge tax though, especially when small honest shops do their fair part.

When I order a coffee at Starbucks and they ask the name to put on the cup, I like to say 'the tax payer'. It's nice to here them call out ' expresso for the tax payer' Smile
NeilS
View Profile
Inner circle
2380 Posts

Profile of NeilS
It is through Dominic's post that I became aware of this potential headache, and am grateful to be alerted.

Although I do not sell magic downloads, I do sell other downloads and will pull the plug on these at the end of next month. However, if I am right in thinking work sold on Lulu is ok, then this is at least an option.
celebrity
View Profile
Inner circle
1619 Posts

Profile of celebrity
How about this as a solution -

I'm in the UK so all of my ebooks will only be made available to UK purchasers.

I also create a slightly amended version of said e-book to someone in the US on the condition that I get ROYALTIES for each sale (they only sell to people in the US). Since the ownership of that product doesn't belong to me surely the tax implications for said country would only be applicable to the person who is then supplying it in the US.

Either that or I sell magical wishes and somehow I know just the right thing that the person would want, a free ebook!!! ha ha
As a mentalist you must always ask yourself what if! And throughout your life you should seek to ask and answer this question over and over again, only then will your wildest dreams become a reality!

Visit - www.mindfx.co.uk to learn more!
Dominic Reyes
View Profile
Inner circle
Got to a gig too early so wrote his
1417 Posts

Profile of Dominic Reyes
Quote:
On Nov 21, 2014, celebrity wrote:


I also create a slightly amended version of said e-book to someone in the US on the condition that I get ROYALTIES for each sale (they only sell to people in the US). Since the ownership of that product doesn't belong to me surely the tax implications for said country would only be applicable to the person who is then supplying it in the US.


If a magic shop or website sells the ebooks or downloads for you, such as Merchant of Magic, Penguin, Lybrary etc etc then they deal with this issue, not you. You would not have to register for tax because of their sales. The sale is between the seller (The magic shop that sells the download) and the Buyer. It's only an issue if you sell ebooks DIRECTLY YOURSELF to a retail customer. Supplying your work to a company to sell for you is fine, as business to business transactions are not included. Also you are supplying 'content' and being paid a commission via a licence.

It's not really an issue of too much worry for magic creators and authors, more for small start up magic shops in Europe that are currently VAT exempt, and US magic shops trading with Europe. Creators can still sell their downloads but may want to use the shelter of an extablished retailer that will take care of the tarde/tax issues.

Hope that reassures people

Dominic
yachanin
View Profile
Inner circle
Cleveland, OH
2075 Posts

Profile of yachanin
Hi Dominic,

I understand you are not a tax expert, but what about those cases in which you do not know in what country the buyer resides? For example, where does JohnPublic@hotmail.com live or how about BillNormal@gmail.com? Is the seller required to determine country of residence?

Regards, Steve
Dominic Reyes
View Profile
Inner circle
Got to a gig too early so wrote his
1417 Posts

Profile of Dominic Reyes
Yes, the seller does have to do that.

I'm far from an expert, and can't give advice etc, it's best to check with your accountant. If anyone on here in the U.S does do that, it would be great to share findings. It's likely that most small business just won't be told directly, so only finding out if actax audit hits you sometime in the next 10 years would not be fun :-(

From what I've read on a load of tax websites, is that the seller who is responsible for collecting proof of the buyers country of origin and must store this for a 10 year period. If you were ever audited, you have to produce 2 sources of evidence for the address of each sale. That's standard accounting. I'm looking further into it as I think there is additional legislation that those records of sale must be stored in a member state that you declare when you register for tax.

It's complex and you shouldn't make any decisions based on a magic Café thread on the subject, or my advice (I turn playing cards over for a living Smile ) it's just wise to check NOW with a tax advisor.

If you ignore this, nothing may happen. It's unlikely you will get an info pack from the tax man about this, small business online is just way too insignificant. It's only if you get an investigation that the IRS look at you in amazement that you didn't know...
yachanin
View Profile
Inner circle
Cleveland, OH
2075 Posts

Profile of yachanin
Hi Dominic,

Thanks for bringing this to our attention. I had no idea, but will speak with my tax guy now that you have made me aware.

Regards, Steve
Tim Cavendish
View Profile
Inner circle
1308 Posts

Profile of Tim Cavendish
Quote:
On Nov 21, 2014, celebrity wrote:
How about this as a solution -

I'm in the UK so all of my ebooks will only be made available to UK purchasers.

I also create a slightly amended version of said e-book to someone in the US on the condition that I get ROYALTIES for each sale (they only sell to people in the US). Since the ownership of that product doesn't belong to me surely the tax implications for said country would only be applicable to the person who is then supplying it in the US.


I don't believe there's any impact on EU sellers selling to US buyers.

My understanding is that the impact is on EU/US sellers selling to EU buyers.
yachanin
View Profile
Inner circle
Cleveland, OH
2075 Posts

Profile of yachanin
Is there a VAT on "leased" e-items? For example, could I lease one of my ebooks for a period of 99 years and not have to charge the VAT for the price of the lease? After the 99 years has elapsed, the owner would no longer be permitted to read the ebook.

Regards, Steve
ku7uk3
View Profile
Inner circle
1778 Posts

Profile of ku7uk3
Looking for a loophole already? You should get a job working for Jimmy Carr and Take That!
JoeJoe
View Profile
Inner circle
Myrtle Beach
1910 Posts

Profile of JoeJoe
It is not something I'm going to worry about, I'd stop selling to VAT countries first.

Considering the government doesn't have the authority to make me collect tax for other states, I don't believe they have any authority to make me collect it for other countries.

-JoeJoe
Amazing JoeJoe on YouTube[url=https://www.youtube.com/user/AmazingJoeJoe]
Tim Cavendish
View Profile
Inner circle
1308 Posts

Profile of Tim Cavendish
Quote:
On Nov 21, 2014, yachanin wrote:
Is there a VAT on "leased" e-items? For example, could I lease one of my ebooks for a period of 99 years and not have to charge the VAT for the price of the lease? After the 99 years has elapsed, the owner would no longer be permitted to read the ebook.


No, leasing ebooks instead of selling them is not a solution. VAT is being applied to the whole category of electronic services.

VAT would therefore also apply to any sort of website membership service where different website areas become unlocked, giving access to resources in those various areas, whether those resources are fully downloadable or not.
Bill Hegbli
View Profile
Eternal Order
Fort Wayne, Indiana
22397 Posts

Profile of Bill Hegbli
Here in the U.S. there are not any International tax attorneys or accountants in smaller towns and cities. All banks have consolidated to only the largest cities and do not know much about how to even deal with international currency, much less knowing anything about European taxes. If asked about payment of VAT they would just look at you funny. Most of the U.S. is not geared toward international business. How they ever would get information on this would be way over their heads for any firm. I once purchased a check to send to London, England, it took over an hour to process, and they had to call home office in Pennsylvania, it then took 5 days to get the check mailed to me. Most international firms are in New York, Chicago, LA, etc. Only the very large cities. Small individual people want to sell eBooks just to not have the resources to deal with this kind of regulation. So they are in essence running the small business person out of business.
JoelDickinson
View Profile
Inner circle
UK
1281 Posts

Profile of JoelDickinson
Would a password to a webpage be a solution?
REALWORKERS.CO.UK
TADAA.CO.UK - ASTONISHING MAGIC
The Magic Cafe Forum Index » » Latest and Greatest? » » Bad News for Anyone Selling Magic ebooks or Downloads (14 Likes)
 Go to page [Previous]  1~2~3~4~5 [Next]
X
[ Top of Page ]
All content & postings Copyright © 2001-2020 Steve Brooks. All Rights Reserved.
This page was created in 0.26 seconds requiring 5 database queries.
The views and comments expressed on The Magic Café
are not necessarily those of The Magic Café, Steve Brooks, or Steve Brooks Magic.
> Privacy Statement <

ROTFL Billions and billions served! ROTFL