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Taxes?

Located in Legal Discussion, started by AGermanGuy, Aug 2, 2016

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  1. AGermanGuy

    AGermanGuy Established Member

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    Someone on the NP forum was talking about taxes and that made me question, do I have to pay taxes if I sell domains?

    I am german, not american so I dont know if there are any differences (there probably are). Also, I am 19 and have no job and will go to School for 3 years in September again, so I never had to do my taxes because I never had an income^^

    IF I have to pay taxes, how do I do it? As I have said, I never had an income yet so I have no idea how to do it.
     
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  2. biggie

    biggie GreenFriendly.com VIP ★★★★★★★★★★

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    Hi

    some basics:

    if you earn ppc from a company that reports income to the government (eye r S), then you may have to pay taxes, depending on amount of income and your tax status.

    if you sell domains, depending on the amount received and "deposited", then you may be questioned about "source" of income, if that institution reports single deposits above a "certain amount" ($9,999.00)... if you didn't report it as taxable income or pay " self-employment taxes" if required where you live.

    if, the taxing agency doesn't know you sold a name, then how do they know you received income?

    if you're out there buying cars and houses with your profits, and you haven't filed a tax form in years, then one day a letter may come, and you'll need a tax lawyer.


    but, typically, if you're buying domains, then those are expenses, which can offset the amount of taxable income from sales,to reduce your tax rate.

    disclaimer: i'm not a lawyer or accountant.


    imo....
     
  3. AGermanGuy

    AGermanGuy Established Member

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    So if I sell domains under 10k value I am fine? And with PPC you mean parking income?

    It would be good if some german could answer this topic, too, since I am german and dont know if German tax laws are different from american ones.

    Also, how do I report these taxes? As I have said, I am 19 and never had a job and thus no income and so never had to report any taxes.
     
  4. AGermanGuy

    AGermanGuy Established Member

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  5. youdn

    youdn Established Member

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    Good to know. Mark.
     
  6. AGermanGuy

    AGermanGuy Established Member

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    I have digged deepern and found out that if you wait 1 year before selling the domain and have used the domain privately before, you dont have to pay taxes. But if I sell the domain before a year and if i am aquiring the domain simply to resell it (which i am obviously doing), I do have to pay taxes. Now I am confused. Because in the link above it says I shouldnt.

    Also, since I have no job I am recieving unemployment benefits. And from what I know if lets say I am working as a newspaper guy and earn 60€ a month, i dont have to pay anything to the state. But if I earn a certain amount of money I have to pay the state the excess money over my free limit since I recieve unemployment benefits.

    But then again, in a month I am going to school and thus do not recieve unemployment benefits anymore and these regulations dont count for me anymore.


    Jesus, this is all so confusing. The source of biggie says I dont have to pay taxes until a certain limit. And the sources I found say I have to pay taxes if I am doing this commercially (what I am obviously doing).

    Should I maybe go to a tax lawyer and get a professional answer?
     
  7. cdboard

    cdboard Top Contributor VIP ★★★★★★★★★★

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    ask one of your government's tax people.

    they probably have free advisors for the citizens to consult.
     
  8. AGermanGuy

    AGermanGuy Established Member

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    I never heard of free government advisors. Atleast here in Germany.

    I probably have to visit a tax lawyer, which is going to hurt my pocket.
     
  9. AGermanGuy

    AGermanGuy Established Member

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    I just found this:

    http://blog.steuerberaten.de/unternehmen/12_4212_umsatzsteuer-beim-domainverkauf/

    Its in german, but it basically says that if the domain is sold outside of germany, you do not have to pay taxes. Like if I sell my domain to an american, I do not have to pay taxes here in germany.

    Jesus, so many different sites saying different things. Now I am even more confused if I have to pay taxes or not.

    And a tax lawyer is very very expensive.
     
  10. NameFilter.com

    NameFilter.com Established Member

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    You have to make a distinction between income tax and VAT. If you sell a domain to an American you don't have to pay VAT, but you would probably have to pay income tax in Germany (sale - costs).
     
  11. dexdn

    dexdn Top Contributor VIP Gold Account

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    Step 1 - Go to Bürgerbüro
    Step 2 - Kleingewerbe anmelden
    Step 3 - Pay 20 EUR.
    Step 4 - Go somewhere and drink a Bier
    Step 5 - Start buying Domains
    Step 6 - Start selling Domains
    Step 7 - Repeat 4, 5 and 6
     
  12. AGermanGuy

    AGermanGuy Established Member

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    Sorry mate, I dont drink Beer, so sadly I have to stop selling domains now. Bye!

    xD

    But to be serious here. I have decided to just go to my local Finanzamt and ask them there. I think they should now what to do or not to do.
     
  13. dexdn

    dexdn Top Contributor VIP Gold Account

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    Ok. ignore step 4, but you should do the ´step 2´ for sure :)
    You will pay about 20 EUR. for `Kleingewerbe` and you are good to go :)

    Gruss aus Konstanz
     
  14. AGermanGuy

    AGermanGuy Established Member

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    Thank you very much! But I really want to go to the Finanzamt first and ask them. Just to be 100% sure you know. I should have done this instead of opening a thread on NP, tbh^^
     
  15. frank-germany

    frank-germany domainer since 2001 / musician VIP

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    1) if you do it for a profit
    the profit is taxable

    - you need to declare it -

    2) the question if and how much income tax you need to pay
    is answered by your finanzamt
    and depending on deductable costs and free amounts

    3) if you need to declare VAT Umsatzsteuer is depending
    on your taxable status
    depending on your cash flow ( Umsatz ) per year

    4) in questions of law ask a competent laywer
    in questions of tax get a steuerberater
    or ask your finanzamt - they will act in your best interest as well
    - as everybody knows-


    ----

    I am no laywer
    but I am a regular tax payer
     
  16. DU

    DU Secret Santa VIP ★★★★★★★★★★

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    No kidding.
     
  17. frank-germany

    frank-germany domainer since 2001 / musician VIP

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    its good to know the tax authorities don't follow

    1) ebay sales
    2) domains sales data
    3) whois data
    and definetely no forum posts.


    allways remember:
    the internet is a save place.

    -as the whole universe-

    the core question of all times:
    "is the universe a save place ?"

    which leads directly to the question:
    is the internet part of the universe?
     

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