It is completely different. VAT comes off the top line, like an excise tax. Income tax comes off the bottom line. Therefore, if a firm is plowing funds into development, it can be at or below 0 on the bottom line, therefore the tax on the funds would be zero, and depending on its previous history, there may even be a federal rebate. Sales tax doesn't apply in a case like this because you aren't getting a LC t-shirt, playing cards, phone sleeve, etc. Then there is the difference between S-corps and C-corps, and their bases and rates, which would further depress the tax on the take.
On Tue, May 24, 2016 at 9:57 AM, Richard Gaskin <ambassa...@fourthworld.com> wrote: > Lagi Pittas wrote: > > > I have just paid my pledge and I was cheesed off that 20% of > > my DONATION/PLEDGE has gone to the government. > > > > If doing feature exchange is to save Kickstarter fees it certainly > > doen't do that. > > It doesn't seem much different from how it works in the States - from the > Kickstarter tax guide: > > In general, in the US, funds raised on Kickstarter are considered > income. > ... > Sales tax may also be applicable in certain cases depending on the > local rules. In general, sales tax applies only if the creator has > sufficient connection to the location of the backer. > > <https://www.kickstarter.com/help/taxes> > > -- > Richard Gaskin > Fourth World Systems > Software Design and Development for the Desktop, Mobile, and the Web > ____________________________________________________________________ > ambassa...@fourthworld.com http://www.FourthWorld.com > > > _______________________________________________ > use-livecode mailing list > use-livecode@lists.runrev.com > Please visit this url to subscribe, unsubscribe and manage your > subscription preferences: > http://lists.runrev.com/mailman/listinfo/use-livecode > -- On the first day, God created the heavens and the Earth On the second day, God created the oceans. On the third day, God put the animals on hold for a few hours, and did a little diving. And God said, "This is good." _______________________________________________ use-livecode mailing list use-livecode@lists.runrev.com Please visit this url to subscribe, unsubscribe and manage your subscription preferences: http://lists.runrev.com/mailman/listinfo/use-livecode
