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New document on VAT?

Sam Gwilym

Posted on February 17, 2022

In the recent post about a Community forum https://opencollective.com/europe/updates/community-forum-this-thursday a 'new tax system' is mentioned and that it will be documented soon. Is that documentation up anywhere?

In particular, is there any explanation for why we need to charge VAT to our collectives, when no VAT was ever collected from donators? Or maybe, hopefully, we don't need to do this anymore?

Jean-François De Hertogh

Posted on February 22, 2022

Hi,

Our documentation is not finalized yet but feel free to access the tax section here.

Let me know if you have any question. You can also reach out to me on Slack.

Regards

Sam Gwilym

Posted on March 4, 2022

Hi, my question is:

VAT is collected on the principle that it is paid for by consumers. Businesses do not pay the costs for VAT out of their pocket.

As OpenCollective does not collect VAT, why does VAT need to be paid? It is essentially being paid out of pocket by the open collective maintainers, and in NL **effectively means 27% of donations are lost to fees**, 21% to a tax that the government has _never earned_.

None of my donators are even based in the EU! It doesn't make a lick of sense to me.

On what basis does VAT need to be paid? The tax section has no information on this at all. 

Jean-François De Hertogh

Posted on March 8, 2022

Hi Sam,

Can you reach out to me by email or on Slack? We are looking to improve our policy on that and I'd love to better understand your needs.

jf@opencollective.brussels
Slack

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