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Small e-commerce tax dilemma

  • 10-07-2011 8:21pm
    #1
    H3llR4iser
    Registered Users, Registered Users 2 Posts: 4,028 ✭✭✭


    Hello all,

    I have developed a computer game in my spare time; I never gave it too much consideration until a friend tried it and suggested I shall sell it for a small fee.

    Therefore I was considering opening up a small website to sell such game, but I am literally wrecking my head around the whole taxation thing: all the information I can find seem to relate to business to business or individual to business transactions, while my case would be similar to the "sole trader" on the high street.

    Things I have been able to determine this far:

    1. I shouldn't have to register for VAT as there's no way in heavens I'd make 35k/year;
    2. Digital goods delivered via downloads are considered services;
    3. Any taxation due shall be paid in Ireland, regardless of where the buyer is in EU;

    Considering that I am a full time employee (in a completely unrelated business, so no conflicts), my doubts are:

    1. Should I register as a sole trader even if I sell a service over the Internet?
    2. Should I manage to sell anything, how is the VAT due to be paid to the Revenue?
    3. Again, if I manage to sell anything, I assume I would have to declare the additional income on top of my empolyee one, right?

    Thanks a lot in advance :)


Comments

  • #2
    J.Ryan
    Registered Users, Registered Users 2 Posts: 474 ✭✭J.Ryan


    H3llR4iser wrote: »
    Hello all,

    I have developed a computer game in my spare time; I never gave it too much consideration until a friend tried it and suggested I shall sell it for a small fee.

    Therefore I was considering opening up a small website to sell such game, but I am literally wrecking my head around the whole taxation thing: all the information I can find seem to relate to business to business or individual to business transactions, while my case would be similar to the "sole trader" on the high street.

    Things I have been able to determine this far:

    1. I shouldn't have to register for VAT as there's no way in heavens I'd make 35k/year;
    2. Digital goods delivered via downloads are considered services;
    3. Any taxation due shall be paid in Ireland, regardless of where the buyer is in EU;

    Considering that I am a full time employee (in a completely unrelated business, so no conflicts), my doubts are:

    1. Should I register as a sole trader even if I sell a service over the Internet?
    2. Should I manage to sell anything, how is the VAT due to be paid to the Revenue?
    3. Again, if I manage to sell anything, I assume I would have to declare the additional income on top of my empolyee one, right?

    Thanks a lot in advance :)
    Short answer

    1. Yes
    2. No VAT unless you choose to register
    3. Yes


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