Runescape gold - margin goods & sales tax percentage?

Discussion in 'Market Discussion' started by RSgoldlab, Dec 8, 2016.

Runescape gold - margin goods & sales tax percentage?
  1. Unread #1 - Dec 8, 2016 at 9:36 AM
  2. RSgoldlab
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    Runescape gold - margin goods & sales tax percentage?

    So, a couple months ago i started my own gold website.
    All went fine, until i realized the sales tax percentage in my country makes it impossible for me to compete with gold websites in countries such as the US.

    For example:
    i would buy 07 gold at $0.90 /m
    i sell 1m 07 gold at $1.12. The sales tax percentage is 21%, 21% of $1.12 is around $0.23
    $1.12 - $0.23 = $0.89!
    i would lose out on money if i sell at competitor rates.

    I've hired an accountant to see if there is a way around this, she contacted the tax authorities in my country (Netherlands) and applied a request to mark my services as margin goods. Margin goods are;
    second hand goods or goods that were privately owned before you bought them. You only pay sales tax on profits when your services/goods are marked as margin goods.

    Unfortunately today i got a letter from the tax authorities informing me that my request was denied.
    I'm not sure what to do next, and i might send in a second, more detailed request.
    i'm wondering if anyone here has previously dealt with the same situation, and if possible, could share me some information regarding this.
     
    Last edited: Dec 8, 2016
  3. Unread #2 - Dec 8, 2016 at 9:38 AM
  4. RSgoldlab
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    Runescape gold - margin goods & sales tax percentage?

    If this isn't the right section to post this i'm sorry :(
     
  5. Unread #3 - Dec 8, 2016 at 10:02 AM
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    Runescape gold - margin goods & sales tax percentage?

    I know @Wortel @Menno and @Sebas613 are Dutchies who have/had gold sites.

    Edit: Well not sure on Menno
     
    Last edited: Dec 8, 2016
  7. Unread #4 - Dec 8, 2016 at 10:05 AM
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    Runescape gold - margin goods & sales tax percentage?

  9. Unread #5 - Dec 8, 2016 at 10:06 AM
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    Runescape gold - margin goods & sales tax percentage?

    You only pay tax on your profit. So 21% of $0.22/M. Highlight your costs too on your report.
     
  11. Unread #6 - Dec 8, 2016 at 11:13 AM
  12. RSgoldlab
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    Runescape gold - margin goods & sales tax percentage?

    Thank you for the effort :)
    i read the article before, and i don't think it applies to the situation in my country.

    To pay taxes on profit only, my services would have to be marked as margin goods.
    According to the letter i got, i'm delivering services and not goods. Therefore i'm not allowed to pay taxes on profit only.

    If anyone has information, preferably dutch gold sellers, i can pay for some helpful answers.
     
    Last edited: Dec 8, 2016
  13. Unread #7 - Dec 8, 2016 at 12:02 PM
  14. basbassibas
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    Runescape gold - margin goods & sales tax percentage?

    Hey RSgoldlab, I'm a canadian who has a site. I have recently hired a bunch of tax experts to do this exact research. They have told me I should only tax people who are from Canada. Everyone else should be tax-free. Yes it would "lose" us money but I will pay a bit extra to see if they find anything. For now since my canadian sales are very low, I continue to sell to them until I figure out what I can do.


    Also, what you're doing is not a service. You're selling virtual goods. I think the person who sent you the letter might've misinformed the tax authorities. I would try to discuss with them directly or make sure your accountant understand what you really do.
     
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    Last edited: Dec 8, 2016
  15. Unread #8 - Dec 8, 2016 at 12:27 PM
  16. RSgoldlab
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    Runescape gold - margin goods & sales tax percentage?

    Hey, thank you for replying.

    Living in Canada gives you fiscal advantage in this market, because you're only held responsible for sales tax on payments that were made to you within Canada.
    In the European Union i'm held responsible for sales tax on all countries within Europe (28 countries).
    it gives me a huge disadvantage, and without a special arrangement i'm losing out on a lot of money.

    I do think my accountant indeed misinformed the authorities by calling my sales 'services'.
    However, i can't mark runescape gold as "goods" in the netherlands. According to multiple articles i read, virtual items/ingame credits are not goods. Not in the EU at least.
     
    Last edited: Dec 9, 2016
  17. Unread #9 - Dec 8, 2016 at 1:22 PM
  18. 07stakes
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    Runescape gold - margin goods & sales tax percentage?

    There will definitely be a loop hole somewhere.

    Can you not open an English bank account and just pay your self in the form of dividends or a wage thus avoiding your taxes?

    That's obviously an over simplified scenario, however I'm sure a good accountant would be able to tell you.
     
    Last edited: Dec 8, 2016
  19. Unread #10 - Dec 12, 2016 at 12:37 PM
  20. RSgoldlab
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    Runescape gold - margin goods & sales tax percentage?

    Question: can virtual objects be qualified as "goods" in the Netherlands?
    if so, how and why?

    again, i can pay for answers, feel free to add me on skype live:rsgoldlab
     
    Last edited: Dec 12, 2016
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