Hi All.
I need to get some advice about how to handle revenue from software I am planning on selling on the internet.
I am planning on using the shareware model for selling my software.
The basic idea is that the software can be downloaded by any potential purchaser. It will be setup to expire after a given period of time. If the user wants to continue using the product they would need to then pay for the product (with their credit card online). I would then send them an email with an unlock code to re-activate the software.
My main question is regarding VAT and income.
I am Irish and I am resident in Ireland.
My website is hosted in an american datacentre.
I will be using an American credit card processing company called shareit .
All transactions will be in US$. The reason I want this is that the american market is by for the biggest for this way of selling software and they like dealing in USD.
ShareIt process the orders and will monthly send a bank wire transfer with any revenue generated.
ShareIt also charge VAT for orders for European customers and the approperate American Taxes for US etc.
I am not going to form a LTD company.
I am not planning on retaining any money in the business and I just going to pay my expenses and any money left over I am going to pay myself as income (obviously paying income tax and PRSI).
Finally my questions
Do you recon I will need to pay American Corporation Tax?
Is there any other tax liability I should be concerned about especially with getting a wire transfer from an american credit card processing company once a month?
Do I need to register for VAT? I am assuming because ShareIt collect the VAT I do not need to be VAT registered.
I know this is a complicated setup and I will need to speak to an accountant but I would be grateful if people could give me their input.
Thanks.
I need to get some advice about how to handle revenue from software I am planning on selling on the internet.
I am planning on using the shareware model for selling my software.
The basic idea is that the software can be downloaded by any potential purchaser. It will be setup to expire after a given period of time. If the user wants to continue using the product they would need to then pay for the product (with their credit card online). I would then send them an email with an unlock code to re-activate the software.
My main question is regarding VAT and income.
I am Irish and I am resident in Ireland.
My website is hosted in an american datacentre.
I will be using an American credit card processing company called shareit .
All transactions will be in US$. The reason I want this is that the american market is by for the biggest for this way of selling software and they like dealing in USD.
ShareIt process the orders and will monthly send a bank wire transfer with any revenue generated.
ShareIt also charge VAT for orders for European customers and the approperate American Taxes for US etc.
I am not going to form a LTD company.
I am not planning on retaining any money in the business and I just going to pay my expenses and any money left over I am going to pay myself as income (obviously paying income tax and PRSI).
Finally my questions
Do you recon I will need to pay American Corporation Tax?
Is there any other tax liability I should be concerned about especially with getting a wire transfer from an american credit card processing company once a month?
Do I need to register for VAT? I am assuming because ShareIt collect the VAT I do not need to be VAT registered.
I know this is a complicated setup and I will need to speak to an accountant but I would be grateful if people could give me their input.
Thanks.