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Dominic Monn
@dmonn
Yeah. The open secret is that the UK will just not bother your $5k MRR business that's making $400 in the UK to remit tax. And so you're better off focusing on building a viable business, not paying 5-10% extra on your revenue to fees, and engaging a good accountant when the time comes. You'll be able to survive the late remittance fees.
Eh, for one thing, if your business is going to live or die based on a 5% fee then you might be running a restaurant, not a SaaS ;)
For another thing, just because the UK won't come after you currently (I agree, it's not likely) doesn't mean some other country will act the same way, or that regulations will remain the same forever.
For those reason I'd rather offload the responsibility of compliance to another entity and I'm glad to pay a small fee in return to never have to think about this again. If the difference was 25% or more, sure, I'd pay more attention to the payment processor fee upfront. But from my perspective I'm getting value out of that 5%, and it's going to cost me a hell of a lot less to eat that on every transaction (I'm not doing that many at the moment) compared to telling my CPA to handle sales tax remittance for me globally.
I'll reevaluate when I start doing enough revenue to where paying my CPA a flat fee to handle it starts to make sense.
Well, we'd pay $27,000 per year additionally in fees if we worked with Paddle. It costs me $990 per year to do our UK + VAT MOSS registration and remit tax. To me, it's worth it. To some, maybe not.
Unless you're in a place that's known to be extremely difficult with VAT (Germany), don't bother with it, go with Stripe, and use the savings to hire a good accountant @ 10k MRR
How does Germany makes VAT extremely difficult? I wanna know what you’re referring to here.
I’m in Singapore and I’ve been handling VAT with Thrivecart’s tax collection information + my accountant at this point anyway.
You're missing the other half of this problem, which is that the countries you're selling to (i.e. where your customers are located) will have an issue with you not remitting tax. It's not just about where your business is located, it's also about where your customers are located and the thresholds in those locations.
For example the UK will ask for you to remit tax if you've had even a single transaction. You are liable from the very first sale (source: tax-agony.paddle.com/united-k…), and they have enough resources to go after you if they really want to.
Will they? Probably not. Do I agree with their tax policy? Also no. But, I like to sleep soundly at night. I wouldn't take the chance for the same reason I pay my income taxes on time every year.
Yeah. The open secret is that the UK will just not bother your $5k MRR business that's making $400 in the UK to remit tax. And so you're better off focusing on building a viable business, not paying 5-10% extra on your revenue to fees, and engaging a good accountant when the time comes. You'll be able to survive the late remittance fees.
Eh, for one thing, if your business is going to live or die based on a 5% fee then you might be running a restaurant, not a SaaS ;)
For another thing, just because the UK won't come after you currently (I agree, it's not likely) doesn't mean some other country will act the same way, or that regulations will remain the same forever.
For those reason I'd rather offload the responsibility of compliance to another entity and I'm glad to pay a small fee in return to never have to think about this again. If the difference was 25% or more, sure, I'd pay more attention to the payment processor fee upfront. But from my perspective I'm getting value out of that 5%, and it's going to cost me a hell of a lot less to eat that on every transaction (I'm not doing that many at the moment) compared to telling my CPA to handle sales tax remittance for me globally.
I'll reevaluate when I start doing enough revenue to where paying my CPA a flat fee to handle it starts to make sense.
Well, we'd pay $27,000 per year additionally in fees if we worked with Paddle. It costs me $990 per year to do our UK + VAT MOSS registration and remit tax. To me, it's worth it. To some, maybe not.
I use www.helpscout.com/ for #mentorcruise. It may be overkill for you. An autoresponder in a separate Gmail Inbox may do the job.
Well, we'd pay $27,000 per year additionally in fees if we worked with Paddle. It costs me $990 per year to do our UK + VAT MOSS registration and remit tax. To me, it's worth it. To some, maybe not.
Yep, that's the point where I'd get off the MoR bandwagon too. Makes sense at tens of thousands of dollars in fees as my CPA only charges about $900 for the same thing as well.