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Costs of running a macOS app studio business

notes.alinpanaitiu.com

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Re: Costs of running a macOS app studio business

#111

Post by zerr »

dinkblam wrote: post #80

> The disadvantage of using a Merchant of Record like Paddle is that I don't get to reclaim the VAT at the end of the year. > That's because it's some kind of B2B relation: > I sell them my app in gross with 0% VAT, and then they resell it and collect taxes themselves. thats confused and wrong. it doesn't matter one bit if the merchant-of-record collects and remits VAT or if you do it yourself. the money ain't yours…

> except Europe

EU, I suppose. What happens when you collect VAT from EU customers? Do you have to transfer to each of EU countries? Is it enforced somehow? What if you don't collect VAT at all? Technically speaking, EU customers buy stuff on your site, not in EU. E.g. they also buy stuff from US Amazon.com and don't pay any VAT. Especially for digital goods - there is no need for an EU delivery address.

Re: Costs of running a macOS app studio business

#112

Post by [deleted] »

dinkblam wrote: post #80

> The disadvantage of using a Merchant of Record like Paddle is that I don't get to reclaim the VAT at the end of the year. > That's because it's some kind of B2B relation: > I sell them my app in gross with 0% VAT, and then they resell it and collect taxes themselves. thats confused and wrong. it doesn't matter one bit if the merchant-of-record collects and remits VAT or if you do it yourself. the money ain't yours…

[deleted]

Re: Costs of running a macOS app studio business

#113

Post by croemer »

alin23 wrote: post #13
jeduan wrote: post #7

Earlier quoted context omitted.

Yeah. Was surprised to see him complain about a 15% business / income tax.

The problem for me is not having to pay that tax. The problem is that we as Romanian citizens never see anything good done with them. And that's why I feel the need to complain. We're out of communism for more than 30 years but the mentality of officials has barely changed. People are dying in dirty hospitals of infections that they didn't have before getting there (see Colectiv 2015). Analphabetism is higher than in…

If the tax rate is so low, it's no surprise there's no money for education and health care - given that Romania isn't Switzerland. Sure there will be corruption but it can't all go to corruption.

Re: Costs of running a macOS app studio business

#114

Post by croemer »

zerr wrote: post #111
dinkblam wrote: post #80

> The disadvantage of using a Merchant of Record like Paddle is that I don't get to reclaim the VAT at the end of the year. > That's because it's some kind of B2B relation: > I sell them my app in gross with 0% VAT, and then they resell it and collect taxes themselves. thats confused and wrong. it doesn't matter one bit if the merchant-of-record collects and remits VAT or if you do it yourself. the money ain't yours…

> except Europe EU, I suppose. What happens when you collect VAT from EU customers? Do you have to transfer to each of EU countries? Is it enforced somehow? What if you don't collect VAT at all? Technically speaking, EU customers buy stuff on your site, not in EU. E.g. they also buy stuff from US Amazon.com and don't pay any VAT. Especially for digital goods - there is no need for an EU delivery address.

European Economic Area to be precise (i.e. Norway, Switzerland etc abide by the same rules). Yes, if you're not a tiny business (OP isn't tiny) you have to pay VAT to each end customer's country. Though you can declare it in your home country to reduce bureaucracy. VAT law is well developed, what matters is the location of the end customer, not where the seller is, so your technically speaking isn't how it works. Wrong, if they buy from US Amazon, they pay VAT at EU customs entry (unless customs misses it or it's below threshold of some 40 EUR or so). Is it enforced? Yes. Do they catch everyone who cheats? No. Do you want to break the law? Better not.

Re: Costs of running a macOS app studio business

#115

Post by jim180 »

zerr wrote: post #111
dinkblam wrote: post #80

> The disadvantage of using a Merchant of Record like Paddle is that I don't get to reclaim the VAT at the end of the year. > That's because it's some kind of B2B relation: > I sell them my app in gross with 0% VAT, and then they resell it and collect taxes themselves. thats confused and wrong. it doesn't matter one bit if the merchant-of-record collects and remits VAT or if you do it yourself. the money ain't yours…

> except Europe EU, I suppose. What happens when you collect VAT from EU customers? Do you have to transfer to each of EU countries? Is it enforced somehow? What if you don't collect VAT at all? Technically speaking, EU customers buy stuff on your site, not in EU. E.g. they also buy stuff from US Amazon.com and don't pay any VAT. Especially for digital goods - there is no need for an EU delivery address.

It depends. Apple pays VAT on your behalf, so you don’t have to do anything.

If, let’s say another service does not do that, you have to pay it your self, but MOSS[1] exist for that, which means that you’ll pay for your local tax agency, and it will distribute VAT payments per country.

[1] https://europa.eu/youreurope/business/taxation/vat/vat-digit...

Re: Costs of running a macOS app studio business

#116

Post by codingcodingboy »

alin23 wrote: post #98
codingcodingboy wrote: post #92

Earlier quoted context omitted.

No offense but I think you do not understand how privileged you are.

Offense seems to be the only thing you do around here. I know I’m privileged, I work with unprivileged people to help them get better sometimes and that is probably the best way to feel how much inequality there is between us. Having a lot of money relative to the place you live in doesn’t guarantee your happiness. Privilege means nothing in the face of illness of a loved one, having to live with parents at 30 becaus…

I don't want to be negative and it's great to see what you've accomplished, the problems you are mentioning and alluding to are unfortunately not exclusive to your country, I could share some horror stories too and I come from the "developed and rich" western europe.

The point is that the net income you get is very high for european standars, let alone Romania. With that level of income it is really weird that you cannot solve the problems you have.

The phrase "I would still need to not spend anything for a year to be able to afford a house" is bonkers.

Re: Costs of running a macOS app studio business

#117

Post by varispeed »

ljm wrote: post #97
asim wrote: post #22

This is a beautifully poignant post about life and selling one's time. At 39 I've reached this point where I can verbalise that sentiment whereas before I could only really feel it. Having to sell one's time to others sucks. Doing things on someone else's schedule sucks. And ultimately as the post ended, having the freedom to spend life the way it should be spent means sacrificing that extra bit of money we might wan…

I had a bit of a mental shift after I turned 30, realising I'd spent the best part of a decade building up my career in various ways. I'm still in the typical 9-5 job since I'm way too young to retire (and we don't get paid the crazy money in the UK that software engineers in parts of the US do), but I've been able to settle on what I want and what I don't want so I have the power to walk away. In the simplest terms,…

Building up career is a trap.

The system is designed to capture everyone as a wage slave and every year there are more barriers put to keep the "pleb" in their lane.

The only way to build wealth (independence, freedom) for one's family is through starting a business that you can scale.

If you go to work at a company always think how you can use the knowledge gained there to start something of your own. Use salaried work as a paid for education, not a mean for living, otherwise you'll get trapped forever.

30 is a turning point, where most people realise about the situation they are in and look for escape.

> In the simplest terms, I just need to be at a place working on something I give a fuck about

That would always be one's own business.

If you are not in a position to run one, always ask for true equity in the business you want to work in.

Re: Costs of running a macOS app studio business

#118

Post by stein1946 »

Exoristos wrote: post #33
ChrisMarshallNY wrote: post #30

Earlier quoted context omitted.

That's why I'm not that upset that no one wants to work with an old guy (that's me), and I was forced to retire. I still get to play with software, but on my own time, and on my own schedule. The difference is amazing .

How is that not actionable discrimination?

You call it discrimination, they call it employment at will.

Re: Costs of running a macOS app studio business

#119

Post by saagarjha »

varispeed wrote: post #117
ljm wrote: post #97

Earlier quoted context omitted.

I had a bit of a mental shift after I turned 30, realising I'd spent the best part of a decade building up my career in various ways. I'm still in the typical 9-5 job since I'm way too young to retire (and we don't get paid the crazy money in the UK that software engineers in parts of the US do), but I've been able to settle on what I want and what I don't want so I have the power to walk away. In the simplest terms,…

Building up career is a trap. The system is designed to capture everyone as a wage slave and every year there are more barriers put to keep the "pleb" in their lane. The only way to build wealth (independence, freedom) for one's family is through starting a business that you can scale. If you go to work at a company always think how you can use the knowledge gained there to start something of your own. Use salaried w…

Definitely not true. If you keep your expenses down and your compensation up (FAANG, etc.) you can easily make enough to retire early.

Re: Costs of running a macOS app studio business

#120

Post by nickpp »

croemer wrote: post #113
alin23 wrote: post #13

Earlier quoted context omitted.

The problem for me is not having to pay that tax. The problem is that we as Romanian citizens never see anything good done with them. And that's why I feel the need to complain. We're out of communism for more than 30 years but the mentality of officials has barely changed. People are dying in dirty hospitals of infections that they didn't have before getting there (see Colectiv 2015). Analphabetism is higher than in…

If the tax rate is so low, it's no surprise there's no money for education and health care - given that Romania isn't Switzerland. Sure there will be corruption but it can't all go to corruption.

> but it can't all go to corruption

What makes you think so?

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