I am a private person and live in the EU and i dont have a VAT number, will Unity apply taxation to my unity ads revenue?
Probably.
Usually how tax works is you have to pay the maximum unless you can prove otherwise through exemption rules etc. Just because you don’t register for a tax number just means you’re neglecting your responsibility to do so and you could potentially get in trouble for it…
Now in relation to VAT, I actually have no idea and I suggest you get advise from a qualified person in your region… But if it is anything like GST in my country, you will pay VAT (or Unity will) and then if you register for a VAT company number, you can claim VAT back on things you’ve bought for your company, hardware, software, rent, power, internet, etc.
Hi,
You don’t need a have a company to get started. When asked to enter a company name in the invoice, simply enter your own name instead.
As for VAT, EU members are only required to enter a VAT number if they currently have one. If you are an EU member, you don’t need to apply for a VAT number to use Unity Ads. If you do not have a VAT number, simply enter “none” in the field when prompted.
For more information about payment requests, please review the following document:
https://secure.applifier.com/unityads/files/UnityAds_payment_request_october.pdf
Let me know if you have any further questions.
Kind regards,
Thank you for your reply but what i wanted to know is if i will get all my money that i earned or if unity will take some of it for taxes.
Hi,
Unity sends the earnings in full - then your bank will take a fee from the wire transfer. After that, handling and reporting the taxes is on your response.
Hi @mikaisomaa ,
Im self-employed (TAX-registered) Unity developer from Slovak Republic, Europe, European Union. I am not VAT-registered. I am not a company.
If i understand it correctly:
- i do not need to be VAT-registered (EDIT: a VAT payer, to be more specific)
- you don’t pay the tax, its up to me to check legislation in my country and pay taxes from the Ad Revenue, that you will send in amount as stated in the invoice i’ll send you. The taxation applies between 2 subjects from EU - me as non-VAT-payer legal subject from SR, and Applifier Oy, Finland, VAT-registered VAT-payer in Finland, Europe, European Union.
- Applifier Oy is the supplier of the service, i am the receiver (this is important to know as i need to identify both sides within my legislation.
EDIT:
4) I just spoke to my accountant. In my country, to receive payments from electronic services from another EU country, which is a VAT payer, i should 1) register for VAT number (this does not make me a VAT payer, only registered for VAT - its a special paragraph $7a in SK tax legislation) - and then write this VAT number into the invoice ill be sending you, and add information: “transference of tax responsibility” (loosely translated) - what this means is that Applifier Oy would pay the VAT in Finland from my earnings.
I am asking this as this seems to be in direct opposite to what Monetization FAQ states: “We won’t deduct any taxes from your payment. Handling taxes for your revenue is on your response.”. So can i do this? register as VAT-registered in Slovakia, and use this number in the invoice, plus the information “transference of tax responsibility”.
Please answer the above, if possible.
Thanks
Hi,
- You don’t need to be VAT -registered
- We don’t pay the tax for you in case there’s such duties involved - we pay you in full
- Correct
- If you can’t invoice us without registering for VAT - handling taxes will still be on your response. We pay you in full and you’ll pay any tax duties that might be required.
Why are you suggested to go forward with the transference of tax responsibility? Would the method I proposed work for you?
Thank you for the reply, @mikaisomaa
Please read carefully, and sorry for the long post.
1/2/3 are clear, lets focus on 4):
At the moment i am self-employed, registered to pay (annual) Personal Income Tax (PIT) in my country.
I am not registered for VAT, and also, i am not paying VAT.
I will have to register for VAT in my county, according to paragraph $7 (Slovak legislation), due to the nature of services ill be now receiving/providing, this is now compulsory. What is not compulsory, is for me to become VAT payer.
There is major difference in duties and responsibilities when i only register for VAT,
as opposed to if i become a VAT payer.
Only registering for VAT, but not being a VAT payer in my country, i can stay self-employed and keep simple accounting (this involves me filling in 1 form per year and sending it to tax department). Becoming a VAT payer in my country, however, requires a much deeper understanding of the constantly changing law, and more complex monthly accounting, which in turn means i will have to hire a full-time accountant. It is, in fact, not feasible for me to become a VAT TAX payer in my country, its just too much for single person to handle, besides i want to focus on development.
So being self-employed (person), VAT-registered ($7), not a VAT-payer - this is the only feasible matrix for me atm.
Sidenote: I am required by law to register as VAT payer, when my annual earnings go over 50k EUR in the previous year (this has not yet happened, once that happens, the registration becomes compulsory and my extended duties also kick in).
So I am paying taxes, its just not VAT. Its PIT. It seems somebody has to pay VAT. In fact what does Applifier Oy pay from the amount? Is Applifier’s earnings tax-free? The only logical explanation for me is that Applifier does deduct something and it pays it in Finland, i assumed its the VAT deduction (in Slovakia this would be compulsory for a large company), and as my accountant advised me, i should mention “transference of tax responsibility” in the invoice - this is to notify that it is Applifier that deducts VAT from the amount.
Take Google for example. Google for developers from EU countries that sell apps to EU entities deducts VAT automatically. From an app that normally costs 1EUR, Google takes 30% provision, and pays the VAT, and the developer receives 0.58EUR, and has to pay no additional taxes (well in my case i would still have to pay PIT).
Anyways, in case i was wrong, and Applifier does not pay the VAT, and i can not pay it (as to be come a VAT-payer entity for me is not feasible due the the complicated laws and responsibilities of VAT payers in Slovakia), only possible solution i can see is that Applifier will pay the VAT from the earnings, and sends them after the deduction. Is this possible, or is it too much for Applifier to handle (a single developer)? Is there another way? Did we misunderstand each-other and can i write “transference of tax responsibility” on the invoice? Could you possibly confirm with your accountant? I would further adhere to whatever the accountants recommend, as it is difficult for us simple developers to discuss tax law further here.
Thank you so much!
Hi,
This is from our payments department:
“Unity Technologies Finland Oy (Unity Ads) is not withholding any taxes from the payouts. UTF has an obligation to report individual persons’ earnings to the Finnish tax authority on a yearly basis. Including non-Finnish developers. It is each individual publisher’s responsibility to report the earnings to a local tax authority.”
I suppose there’s no VAT requirement either, before you reach a 50k annual revenue?
I hope this helps.