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Krita Foundation in Trouble

krita.org

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Re: Krita Foundation in Trouble

#111

Post by icebraining »

roel_v wrote: post #41
Jonnax wrote: 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?

The company I work for does, that's why we have insurance.

Re: Krita Foundation in Trouble

#112

Post by gcp »

mrkrabo wrote: post #98
gcp wrote: post #96

Earlier quoted context omitted.

Do you even understand what VAT is and how it works? They are and were collecting VAT on their sales. This part is unavoidable regardless. For the stuff they buy, they're not avoiding VAT. There's no point in avoiding VAT because it doesn't cost a business anything. YOU GET IT BACK FROM THE STATE. The whole point of VAT is that it is a zero-sum game for businesses. But due to their old structure, they're in a situati…

Of course I know what VAT is. I am a freelancer based in Europe. And I know if I'm paying SOMEONE for his services I also have to pay VAT, regardless of whether I'll get it back later or not. Why? Because I have to prove that VAT was spent in something related to my business (I can't have the VAT from my food returned, for example). It does not only apply to goods, it also applies to services.

What you say is (or used to be) false for deferred VAT transactions, but anyway.

If you understand the nuance, why are you saying they're dodging taxes? The VAT on the freelancer is related to their business, so it is intended to be recoverable.

Re: Krita Foundation in Trouble

#113

Post by tempay »

icebraining wrote: post #101
deanclatworthy wrote: post #91

Earlier quoted context omitted.

This is not true for every bank in every EU country.

Yes, I believe the only requirement is that the cost can't exceed of a national transfer, which is unfortunately still not free everywhere in the EU.

I think you can also be charged if a currency conversion is involved (both directly and indirectly through poor exchange rates).

Re: Krita Foundation in Trouble

#114

Post by gcp »

icebraining wrote: post #84
gcp wrote: post #70

Earlier quoted context omitted.

They would need to prove they suffered loss (and an actual error!). That's not clear in this situation. Not paying taxes you were due isn't extra costs due to your accountant, although fines and interests may be.

They say the money made by the developer is only due because of iffy status of the Foundation, and now the income is tax free. So it seems that the taxes due were because of the accountant advice on the structure of the Foundation - unless the sales started later, or the laws changed in between.

That's a fair point. Still won't be easy to actually come out on top when litigating, though.

Re: Krita Foundation in Trouble

#115

Post by ralfn »

boudewijnrempt wrote: post #45
KayEss wrote: post #37

Earlier quoted context omitted.

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.

Honestly, your accountant sucked. All the rules are about making sure value produced is taxed exactly once. No more no less. If you find a loophole out of that, you better triple check that, because it is definitely not the spirit these tax laws are written in.

Not to blame you - i too would trust a professional. Also, in Holland, accountancy is a protected profession. You can report them, because at the end of the day he/she took a risk that you would likely personally not have taken if you were aware of it.

Re: Krita Foundation in Trouble

#116

Post by DanBC »

KayEss wrote: post #66
Kiro wrote: post #57

Earlier quoted context omitted.

What do you mean? You pay VAT on imported goods. Not on imported services.

You might pay a customs duty on imported goods, but you don't pay VAT.

https://www.gov.uk/goods-sent-from-abroad/overview

https://www.gov.uk/goods-sent-from-abroad/tax-and-duty

> You pay VAT on goods sent from non-European Union (EU) countries and EU special territories (eg the Canary Islands) if they’re:

> gifts worth more than £39

> other goods worth more than £15

> alcohol, tobacco products and fragrances (eg perfume, eau de toilette and cologne) of any value

Customs duty is different.

> You’ll be charged Customs Duty on gifts and other goods sent from outside the EU if they’re above a certain value.

> The value includes:

> the price paid for the goods

> postage, packaging and insurance

   Type and value of good   Customs Duty
   Anything under £135      No charge
   Gifts worth £135-£630    2.5%, but rates are lower for some goods - call the helpline
   Gifts above £630 and other goods above £135	The rate depends on the type of goods and where they came from - call the helpline

Re: Krita Foundation in Trouble

#117

Post by JakiesKonto »

gghh wrote: post #17

I'd like to drop a note on how much I appreciate Krita. I'm not an artist by any mean, I'm a programmer and while I think I write/draw/sketch a lot on paper. A few months ago I switched from paper to digital hand-writing and bought an old Wacom Intuos drawing tablet. I'm on Linux and Krita works great with a stylus; very comfortable and intuitive, I haven't looked back.

same attitude but im still missing that Wacom, thx for info about linux

Re: Krita Foundation in Trouble

#118

Post by mrkrabo »

gcp wrote: post #112
mrkrabo wrote: post #98

Earlier quoted context omitted.

Of course I know what VAT is. I am a freelancer based in Europe. And I know if I'm paying SOMEONE for his services I also have to pay VAT, regardless of whether I'll get it back later or not. Why? Because I have to prove that VAT was spent in something related to my business (I can't have the VAT from my food returned, for example). It does not only apply to goods, it also applies to services.

What you say is (or used to be) false for deferred VAT transactions, but anyway. If you understand the nuance, why are you saying they're dodging taxes? The VAT on the freelancer is related to their business, so it is intended to be recoverable.

Do you think it is acceptable to not pay VAT just because you know you'll get the money back? It is not legal, at least. Who are you to judge that? The government must know, because they are the ones to judge.

Re: Krita Foundation in Trouble

#119

Post by csomar »

lmm wrote: post #99
csomar wrote: post #43

I don't get it. Isn't Dmitry the guy responsible for paying the VAT for the Dutch authorities?

If they were within the EU they would be. But because Dimitry is outside the EU, whoever's importing their work from outside the EU is responsible. (This prevents avoiding VAT by having your work done outside the EU). The EU has no way to go after an outside entity, so that's how it has to be.

Maybe I'm not quite intelligent but doesn't the VAT only work in the same jurisdiction? I mean, if we are on different tax jurisdictions then VAT should not be applicable. That's, at least, how it works in my country.

Re: Krita Foundation in Trouble

#120

Post by ralfn »

Kiro wrote: post #57
varjag wrote: post #49

Earlier quoted context omitted.

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).

What do you mean? You pay VAT on imported goods. Not on imported services.

If that distinction would exist (it doesn't) it would be another huge loophole.

Ill sell you a car for 1 cent if you also take the car care service where we email you a magazine for 60k. Tax avoided.

And companies within the country that would have to pay tax couldnt compete with that. So soon everybody in the country would be unemployed.

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