Herr Edgy
Member
Ok so, I'm from Germany and recently registered as a freelancer. I have a pretty big fish as my first client, contract isn't signed yet though.
In any case, laws are really confusing around that. Spoke to an accountant who was willing to answer questions without pay, but as it turns out, he knows jackshit about US tax law.
Now, looking around the internet, it becomes really hard to find good information. Either it's about freelancers from inside the US, or a different tax treaty applies, or there is just contradicting information or straight up misinformation floating about.
I was researching about US tax law for a couple days now and figured out that due to our tax treaty I don't need to pay income tax. However sales tax might apply.
As far as I learned sales tax is only applied at the end sale to the consumer; implying if I develop some software for my client, who then in turn uses my work for other clients and consumers to use, there won't be any sales tax in the transactions between me and the client. This is so different from the EU VAT, where any transaction charges extra VAT so the cost still ends up at the consumer at the end, but it makes it easier for me in the US, if I'm correct about that.
So I thought: why not ask Gaf about their experiences. No matter if you can answer questions I have or not, what were your experiences, any hassles that creep into your life because no one was able to tell you before it hit you?
How has freelancing been working out for you? Is it a hassle acquiring clients internationally for countries outside of your jurisdiction? Inside the EU it's pretty clear cut with the VAT ID and the reverse charge system for VAT/sales tax, but between countries with vastly different tax systems it becomes quite annoying.
In any case, laws are really confusing around that. Spoke to an accountant who was willing to answer questions without pay, but as it turns out, he knows jackshit about US tax law.
Now, looking around the internet, it becomes really hard to find good information. Either it's about freelancers from inside the US, or a different tax treaty applies, or there is just contradicting information or straight up misinformation floating about.
I was researching about US tax law for a couple days now and figured out that due to our tax treaty I don't need to pay income tax. However sales tax might apply.
As far as I learned sales tax is only applied at the end sale to the consumer; implying if I develop some software for my client, who then in turn uses my work for other clients and consumers to use, there won't be any sales tax in the transactions between me and the client. This is so different from the EU VAT, where any transaction charges extra VAT so the cost still ends up at the consumer at the end, but it makes it easier for me in the US, if I'm correct about that.
So I thought: why not ask Gaf about their experiences. No matter if you can answer questions I have or not, what were your experiences, any hassles that creep into your life because no one was able to tell you before it hit you?
How has freelancing been working out for you? Is it a hassle acquiring clients internationally for countries outside of your jurisdiction? Inside the EU it's pretty clear cut with the VAT ID and the reverse charge system for VAT/sales tax, but between countries with vastly different tax systems it becomes quite annoying.
