Hi!
I'm also thinking about publishing my game, but i have doubt about tax problem.
Even i register myself in RefSoft or others, i think we have to pay taxes.
I'm an individual.

Moreover i think individuals cannot sell game legally through internet because we are unable to make out a bill.
I didn't asked Inland Ravenue yet in my country because they aren't too cooperative.

Cant offer much advice as you didn't say what country.

Talk to an accountant. I would be very surprised if it is not possible for individuals to sell games. There are a large number of payment processing options that handle the billing and processing of payments online and then just pay you the money. You then just declare that for tax purposes.

In Hungary (Central Europe) but i think the situation is same or similar in other countries.
Just imagine this exaple:
I finsished a game and it's 100 USD.
I'm create an account somwhere (let it RegNov) and pay 10 USD for opening.
Sombody buy this game for 100 USD and i have to pay 2 USD for the RegNov.
I have 98 USD now on my account. This is a clear income.
The problems:
- I didn't pay tax in _my_ country.
- I didn't send a bill to my client.

Other words: i did some work, i have obtain money, but i didn't pay anithing to local Tax Office.

Unless i'm mistaken.

Quote: if i sell like this I don't have to worry about any tax problems ?

Not sales tax since Regsoft adds the tax to any customer in their state (GA I think it is). You do have to deal with income tax though.

Also, I've been very happy with Regsoft's work and I would recommend them. Although someday, I would really like to handle everything myself, but that won't happen any time soon probably.

Quote: Original post by Red Planet
I have 98 USD now on my account. This is a clear income.
The problems:
- I didn't pay tax in _my_ country.
- I didn't send a bill to my client.

Other words: i did some work, i have obtain money, but i didn't pay anithing to local Tax Office.

You didn't pay YET, but you will.

Legally you don't do business with the customer. You sell RegNow (or other company) a license to sell your game. RegNow does business with the customer and must claim any relevant sales tax and pay any relevant corporation tax on the deal. They must also issue a bill to the customer.

You do your deal with RegNow. When they pay you the $98 that is income and you are required to declare that income and pay tax in Hungary. Of course Hungary may be different but that is certainly how it works in the US, UK and Western Europe - You really do need to talk to a local accountant to make sure.

Red Planet:

the bill to your customer is sent by RegNow or whatever service you use. also, it is them who refund the money if the customer is not satified. so that one is solved.

After the purchase, your money are the 98 bucks you have in your account at RegNow. on a monthly basis (or so) they so you the money into a bank account you have. no matter if you are an individual or company, you have to declare that money and pay income taxes (like sam said). and this is how you solve this one (rather painfull, I think).

ps: i'm just assuming here, plase argue if you know i'm wrong

obscure: :) (look at the time of our last 2 replies)

ps: if it weren't legal to sell as an idividual, then RegNow or others wouldn't allow you to get an account as an individual, right ?

But this is very uncontrollable (at least also in my country).
I will ask my local Tax Office but as my accountant told me if it's truth i need to pay additional 20 percent TAX in next year for clear income.