Question about sales taxes on selling RuneScape gold

If you're flipping gold for 3-10% margins, how do you deal with the european sales tax being 19% per transaction. That would mean it's not possible to flip and pay sales taxes

 

19% sales tax would be insane, are you sure it's not VAT?

If it's VAT you would deduce the expenditure and only pay 19% of your margin/net income in tax.

Sales tax or tax on gross income is usually between 1 to 6%, if it exists, and usually it's not federal but state/province wide.

 

You're a gold seller you should know this already

 

Lot's of providers here are not registered in a state, the site owner is infamous for being or having been a freeman of the land, lots of people trade with crypto.

I'd say paying taxes is not very common on sythe.

 

taxes lol

 

Probably best to just deal in Crypto and avoid paying taxes all together, unless you're making substantial amounts of money from selling gold..

 

Pussy move, what if a client wants to pay with their credit card like with any other online purchase?

One must make a distinction whether the gold is sold as an entertaniment consumer product or as a store of value.

In the first case, the margin can be higher since there is no expectation of resale, the seller need not advertise a repurchase price and thus make explicit their margins. With this higher margin one can pay their payment processor, taxes, and other usual business fees.

In the second case, that of a store of value, one expects a certain liquidity out of the asset, competing assets like gold, USD or stock, bonds, have very low comissions on trade, but also very high volumes, the buy sell spread can be between 0 and 3 %. In that case, a sales tax would increase the spread by at least twofold, while taxes calculated on margin will not have such a dispoportionate effect.

One must look then for exemptions to sales taxes, perhaps by placing the asset category under something closer to gold or financial instruments rather than consumer goods like entertainment.

If no such exemption can be achieved or there is fear of non-compliance, non reported methods like cash (uncommon in virtual environments) or cryptocurrency are a viable option. Not my style, but it's within this context that I would consider it viable.

Now, plain selling in crypto on all asset types just to avoid taxes, pussy move.