Yeah seems like the writer of the PC Gamer article doesn’t understand what VAT is.
To laymen like you and I, this situation probably seems pretty open and shut. If you make money on something, you pay taxes on it.
Yeah VAT is not a tax on money made. VAT is a tax that is applied to a transaction for goods and service between a business and a consumer. VAT is a tax that the consumer pays. The business only collects it and has the obligation to pay it to the tax services. So even if a business makes zero profit they still need to pay the VAT they collected.
The question here was if RuneScape gold is a product or if it is legal tender. If it was legal tender then you don’t pay VAT on it, similar to when if you trade one currency to another VAT is not applied.
The question here was if RuneScape gold is a product or if it is legal tender. If it was legal tender then you don’t pay VAT on it, similar to when if you trade one currency to another VAT is not applied.
Even if they went that way (good luck with that), doesn’t that mean farming gold regularly and for profit should still be registered as a professional activity? Or at least the result of it declared as revenue?
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Yeah seems like the writer of the PC Gamer article doesn’t understand what VAT is.
Yeah VAT is not a tax on money made. VAT is a tax that is applied to a transaction for goods and service between a business and a consumer. VAT is a tax that the consumer pays. The business only collects it and has the obligation to pay it to the tax services. So even if a business makes zero profit they still need to pay the VAT they collected.
The question here was if RuneScape gold is a product or if it is legal tender. If it was legal tender then you don’t pay VAT on it, similar to when if you trade one currency to another VAT is not applied.
Speaks greatly for the quality of pcgamer. Guess the schools in the USA aren’t the very best.
to be fair, I don’t think any US state has VAT.
AFAIK they do? Different even in every state.
Many US states have sales tax, but I don’t think it counts as VAT.
Ah right, just a sales-tax. I should’ve shut up 😁
If Runescape gold is legal tender, do I have to pay taxes on my earnings from my Zulrah grind?
Probably income tax or a gambling tax like what you’d pay if you win money one a game show. But there is a threshold, so tax free for small earnings.
Yeah, that’s why they added the GE tax
Even if they went that way (good luck with that), doesn’t that mean farming gold regularly and for profit should still be registered as a professional activity? Or at least the result of it declared as revenue?
I don’t think they want that.
Of course he still needs to pay income tax. But that’s something else from VAT.