Common mistake when starting an Online Business
Did the line above frighten you? It sure frightened me the first time I came across it. If you are just starting out in the business, any kind of business, you should know that you have to pay taxes (the amount varies for each country). So Please, consult with an Accountant, before you receive your first payments, no matter where it comes from, wether it’s from Udemy, AdSense, Upwork, Fiverr or whatever it is that you are doing. ESPECIALLY if it’s a company that is paying you.
You see, when companies pay you, they have to justify that as an expense on their end (so that they can pay less profit tax) and to do that, they must tell the Revenue Agency in their country that they paid you something. Chances are, especially if you are in the EU, and the company that’s paying you has an office in the EU, they are doing it, and the Revenue Agencies in the countries in the EU share information, sooner or later the Revenue Agency in your country will find out that you received a payment.
It doesn’t matter if it was only $50, you should declare it at least – again, consult with an Accountant. My consultation costed me $30 and I avoided over $5000 of fines due to possible future mistakes on my behalf.
Keep that in mind.