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Krita Foundation in Trouble

krita.org

41–50 of 235 posts

Re: Krita Foundation in Trouble

#41
post #2

That's really sad to hear. With how complex laws are, it's scary that going to a professional may not be sufficient. But when you're totally unfamiliar with what the requirements are what can you do? Do large law/accountancy firms give a guarantee for their advice in the case that it was incorrect?

"Do large law/accountancy firms give a guarantee for their advice in the case that it was incorrect?"

Do you give a guarantee on your code, including damages?

Re: Krita Foundation in Trouble

#42
post #27
post #11

Just a quick reminder, if everyone here donates just 3-5$, the expenses will be paid in no time :) Krita is a great software, and even though I'm not an artist it's worth supporting.

You are not supporting the software but bad practices resulting in fines and fees. But there's hoping a lesson was learned. It would be a shame if something like this damaged the product.

Boudewijn Rempt replied elsewhere in this thread with a little more details [1]. After reading this, I don't think the fines are based on bad practices by Krita, but rather on the over-complicated Dutch tax system.

[1] - https://news.ycombinator.com/item?id=14899324

Re: Krita Foundation in Trouble

#44
post #33
post #27

Earlier quoted context omitted.

You are not supporting the software but bad practices resulting in fines and fees. But there's hoping a lesson was learned. It would be a shame if something like this damaged the product.

You say bad practices, but they got advice from a registered qualified professional in a complex area of tax law.

Yeah, I see, I didn't mean to say it was intentional.

Re: Krita Foundation in Trouble

#45
post #37

Earlier quoted context omitted.

Dmitry is a freelancer who lives in Moscow, not an employee. For the kind of work Dmitry does, there is no VAT appliccable in Russia. If the Krita Foundation had been Russian, no VAT would have been applicable. There is no VAT ID on his invoices, but he does send invoices. He also keeps ownership over his work, and the Foundation doesn't tell him what to work on... But since the Krita Foundation is in the Netherlands…

They think you should pay VAT on imported services? That sounds very fishy to me. I've never heard of such a thing (and I have been exporting into the EU for many years).

Yes... It's no wonder that my first accountant never realized that this could be possible.

Re: Krita Foundation in Trouble

#46
post #5
post #2

That's really sad to hear. With how complex laws are, it's scary that going to a professional may not be sufficient. But when you're totally unfamiliar with what the requirements are what can you do? Do large law/accountancy firms give a guarantee for their advice in the case that it was incorrect?

Say what you will but this is simply fraud. If they were selling stuff, they should've collected and paid the VAT for Dmitry. You are NOT a non-profit if you sell stuff. There is absolutely no complexity about this. Didn't they see anything wrong with selling stuff without collecting the VAT from every transaction? And the best part: they are now separating the sales from the foundation so they can avoid paying taxes…

"Note: in the interests of full transparency, you can find our end-of-year reports for 2013, 2014, 2015 and 2016 here." https://docs.google.com/spreadsheets/d/1SXm7DQAGfw4Qr1VrXln6...

Lazy post. Also a Non-Profit Foundation and Amazon are two totally different beast. So your saying the Red Cross and Amazon should have the same practices?

Re: Krita Foundation in Trouble

#47
post #11

Just a quick reminder, if everyone here donates just 3-5$, the expenses will be paid in no time :) Krita is a great software, and even though I'm not an artist it's worth supporting.

You're right. Although i don't use it, i just spent a few euros :)

Re: Krita Foundation in Trouble

#48
> The Foundation was created to be able to have Dmitry work full-time on Krita. Because we sell stuff, the tax inspector has determined that we’re a company, and should have paid VAT in the Netherlands over the work Dmitry has been doing in Russia. Even though there is no VAT in Russia on the kind of work Dmitry is doing.

As someone who has dealt with VAT in the EU a bit this sounds really odd to me. Even if the inspector determines that VAT needs to be charged on these services, shouldn't it be Dmitry who is paying them, not the foundation?

In other words, they should be coming after the person providing the services for the VAT that he neglected to charge, not after the foundation who just paid the invoices they were given.

Re: Krita Foundation in Trouble

#49
post #37

Earlier quoted context omitted.

Dmitry is a freelancer who lives in Moscow, not an employee. For the kind of work Dmitry does, there is no VAT appliccable in Russia. If the Krita Foundation had been Russian, no VAT would have been applicable. There is no VAT ID on his invoices, but he does send invoices. He also keeps ownership over his work, and the Foundation doesn't tell him what to work on... But since the Krita Foundation is in the Netherlands…

They think you should pay VAT on imported services? That sounds very fishy to me. I've never heard of such a thing (and I have been exporting into the EU for many years).

You should, in most places of the world that have VAT. E.g. you pay VAT on inbound courier services like UPS, FedEx, atop of the duty on the goods they carry. (but not on outbound ones).

Re: Krita Foundation in Trouble

#50
post #39
post #20

Earlier quoted context omitted.

I hope this (the "Hacker News effect") doesn't bump up your hosting costs as that's the last thing you'd need. For what it's worth, I've donated. :)

EU bank transfers are free of charge.

He meant server hosting costs.
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