Help, financial/Legal problem

MagoNicolasMagoNicolas Member, PRO Posts: 2,090
Hello there, how are you?
I have a question.
I don't know how to "legalize" if that word exist, the money that comes from Apple.
Because they deposit that money in My currency directly in my account and I can`t declare that money because I can`t send apple a receipt.
How do you guys do this legal stuff?
You have a Company?
You Don't have a company? What do you do, please help.

Comments

  • PhoticsPhotics Member Posts: 4,172
    MagoNicolas said:
    Hello there, how are you?

    I'm OK. Thanks for asking.
    MagoNicolas said:
    I don't know how to "legalize" if that word exist, the money that comes from Apple.

    I'm not sure why you think it would be illegal.
    MagoNicolas said:
    Because they deposit that money in My currency directly in my account and I can`t declare that money because I can`t send apple a receipt.

    You get monthly reports from Apple though. Why would you need a receipt?
    MagoNicolas said:
    How do you guys do this legal stuff?
    You have a Company?
    You Don't have a company? What do you do, please help.

    Photics is a registered business. I report the income on my taxes.
  • HunnenkoenigHunnenkoenig Member Posts: 1,173
    Hello,

    I have a company in Hungary.

    I have to write invoices to Apple for the received money, because I have to present it to my Tax Office. The invoice has to have a serial number.

    We simply write the invoice and throw it away. We then send the copy to the Tax Office.
    (btw. you can send your invoices to Apple, but you don't need to, because they are not interested in it. If you still want to do it, you can find the address to send the invoices to on their developer FAQ somewhere)

    If you have a company and you want to have invoices from another company which you can declare as expenses to lessen your income taxes, send me an email to hunnenkoenig@chello.at

    Everybody outside the EU can do so as well :-P
  • PhoticsPhotics Member Posts: 4,172
    Hunnenkoenig said:
    I have to write invoices to Apple for the received money, because I have to present it to my Tax Office. The invoice has to have a serial number.

    Wow, that's so weird. If you're sending an invoice to Apple - as record of payment - then how is that an expense? I'm thinking that's income.
  • Ruslan21Ruslan21 Member Posts: 228
    why do you use apple reports as an invoce, we have a company and when we do taxes we just print out all the reports from apple and take it to tax office .
  • MotherHooseMotherHoose Member Posts: 2,456
    in the mumbo-jumbo of the business world...

    you can NOT receive payments unless you request payments (i.e. invoice)
    the records have to balance... you have to bill for the amount of money owed you...
    otherwise your tax department wont know why Apple is sending you money!

    very confusing... but most country tax laws insist on not just ledger/bookkeeping but also physical proof to substantiate transactions ...

    as Hunnenkoenig said... you give the government what they want.

    they do not ask the paying companies to show the invoices you send them...

    you are legal if you are doing legal things in a legal way....
    but, in some countries operating as a registered company benefits you for tax deductions/liability issues.

    MH
  • MagoNicolasMagoNicolas Member, PRO Posts: 2,090
    I Dont Have a Registered Company.
    Thanks for all advice, I think that printing reports is a good idea.
    And also sometimes internet stuff are different, sometimes they don't pay taxes, will need to know how this works in Chile, but no one has an answer, I have asked Lawyers, countability people And Called an emails the organization that is in charge of money that people receives and need to be declared. No one nows….
    Will still try to figure it out. As I Sayd, didn't knew that reports has some "Validity" but thats the only prove i have, and must be ok.
    Thaks dudes.
  • PhoticsPhotics Member Posts: 4,172
    MotherHoose said:
    but most country tax laws insist on not just ledger/bookkeeping but also physical proof to substantiate transactions

    I've never heard of that before. I've never been asked to produce an invoice while filing taxes, not for web related stuff like this. Usually, it works like this...

    I fill out a W9/1099 form through the company that's paying me.
    (If it's over $600 in a year, the company is required to file.)

    After January, but before April 15, I collect my paperwork and then I go file my taxes with an accountant. I report the money that I earned. I wasn't asked for invoices.
  • ChaserChaser Member Posts: 1,453
    @photics same procedure for me when I ran my appraisal business. Sending somebody an invoice is so they have a reminder of what they owe you and so they dont waste their time calling or writing you to find out how much is owed
  • 8BitMichael8BitMichael Member, PRO Posts: 125
    @photics Have you filed taxes as an app developer before? I heard that Apple doesn't send you a tax form because they declare it as royalties or something. How do you know/verify exactly how much you've earned?
  • tenrdrmertenrdrmer Member, Sous Chef, Senior Sous-Chef Posts: 9,934
    The money you receive from apple is income which is reported to you with there reports. You should not be sending apple a receipt. Just treat the apple reports like 1099 (US Form) sorry don't know where you are from i'm US. But thats how you verify your income from apple and it would be the same from them regardless of your account type.
  • HunnenkoenigHunnenkoenig Member Posts: 1,173
    Ok, I think some people here are a bit confused.

    Every country has different laws.

    In hungary the Tax Office is like SS Nazis. They need proof of everything, although they don't know jack. They think, the whole world is spinning around hungary and they would never accept something, like apple financial reports. To be honest, apple's financial reports are also not exact, because the money I receive to my Bank Account is always different, than that, what it is in the reports.

    Anyway...

    I have to have a bill for every spent money and I have to have an invoice for every received money. It is so.

    That's why I have to write those invoices.

    In your country it is possible, that you can present a piece of toilette paper and they accept it. I don't know.

    I wouldn't make a big deal about it anyway. If you have to present an invoice, present it and you are good to go. If you don't have to, consider yourself and your country lucky and advanced :-P

    @MagoNicolas:
    If in Chile nobody knows, then there is probably nothing to know.
    Don't crash your head on it.

    I had to fight over 6 months with my tax office, because they didn't know, how to handle internet sales and they still don't know.
    At the end I explained how the situation is and how I would handle it. I requested a written statement and they said, it's ok, how I want to handle it. So I handle it so. If they have some problems, I can show my written statement for proof, that they accepted my way in the beginning. Maybe you could do the same.

    But as I said, I had to do this, because I am a company.

    If you are a natural person, then you have to declare your personal income and you have to pay only income taxes for your person, like you would pay, if you were working in a factory.

    Based on the laws in your country, you have to do it probably once a year.

    @Photics:
    It is not an expense.
    The two things were separate things.

    I just offered to everybody, that I can send them (not apple, but you and the other devs here) invoices from my company, which you or the other devs can declare as expenses, without sending me the money. So you can save taxes and money.

    If anybody interested, send me an email.
  • PhoticsPhotics Member Posts: 4,172
    tenrdrmer said:
    The money you receive from apple is income which is reported to you with there reports. You should not be sending apple a receipt. Just treat the apple reports like 1099 (US Form) sorry don't know where you are from i'm US. But thats how you verify your income from apple and it would be the same from them regardless of your account type.

    Yeah, I think it's a country thing. It seems easier in the United States.
    MDD said:
    @photics Have you filed taxes as an app developer before? I heard that Apple doesn't send you a tax form because they declare it as royalties or something. How do you know/verify exactly how much you've earned?

    The money Apple sends me is the money I've earned. If I need proof, I just print those monthly reports from Apple.

    I reported the income that I made from my Android Apps. I had a problem with sales tax, but that was a separate (and now resolved) issue.
  • MagoNicolasMagoNicolas Member, PRO Posts: 2,090
    Thanks to all!
    Hunnenkoenig I think my case is like you say, I declare like a natural person, and need to send a receipt to Apple (Yesterday finally I meet a lawyer that knows a little more than previous one and say something like that, That I need to generate a generic ID for Apple, because they don't have a chilean id).
    Mauybe I will need that expenses favor. because i have spent money on templates, website templates, GS membership, video from outside chile via internet, etc, that I don't ace receipt to prove them.

    Thanks again.
  • HunnenkoenigHunnenkoenig Member Posts: 1,173
    MagoNicolas:

    In normal cases you need to generate follow up numbers for your Invoices, not for Apple as a company.

    Of course, to you as a natural person other laws may apply.

    In hungary you can't write invoices as a natural person. To be able to do so, you need to ask for a special tax number and then you can write invoices, which are taxed in a different way, but you also get some privileges.

    In austria you can write invoices as a natural person until a certain amount per year.

    We write invoices to Apple, where the name and the US address of Apple appears and we give the invoice a unique serial number. That's all.

    As I said, it's better if you ask your tax office, how to handle it, rather consulting a lawyer.

    For the other thing, just send me an email and we will talk about it.

    You also can find me on MSN by hunnenkoenig@chello.at
  • peachpellenpeachpellen Member Posts: 977
    MagoNicolas said:
    Thanks to all!
    Hunnenkoenig I think my case is like you say, I declare like a natural person, and need to send a receipt to Apple (Yesterday finally I meet a lawyer that knows a little more than previous one and say something like that, That I need to generate a generic ID for Apple, because they don't have a chilean id).
    Mauybe I will need that expenses favor. because i have spent money on templates, website templates, GS membership, video from outside chile via internet, etc, that I don't ace receipt to prove them.

    Thanks again.

    You should start requesting receipts or invoices whenever you can; seriously it makes a huge impact come tax time.

    I don't know about in Chile, but here we can claim anything even close to a work expense.
  • HunnenkoenigHunnenkoenig Member Posts: 1,173
    Peachpellen:
    The problem is, that not everybody is capable, willing or allowed to give out invoices.

    If he bought some website templates from another regular guy on the other end of the world, paying with paypal, he just may not be able to get an invoice, because the other guy can't or don't want to write and send an invoice.

    I have run into some services on the net, which I bought and they claim to be professionals with a company, but they still don't care about invoices.

    If there is a possibility to see your bills on their website, it lacks important information, which I need, like tax number or other things.

    We in hungary have strickt rules, what kind of data we have to display on an invoice and most forign guys (mainly US) don't understand why I need that info, they don't have that info, or they simply crap on my needs.

    That's why I am offering my help. And of course, because I have also some expenses, which I have to cover, but I can't do it in the simplest way due to different country laws in an international business.

    Both sides can profit from it.

    Viva la Globalization! :-P
  • peachpellenpeachpellen Member Posts: 977
    I simply said that he should ask :)

    I do understand the invoice issue but in my experience it does pay to ask.
  • PhoticsPhotics Member Posts: 4,172
    Hunnenkoenig said:
    If he bought some website templates from another regular guy on the other end of the world, paying with paypal, he just may not be able to get an invoice, because the other guy can't or don't want to write and send an invoice.

    I don't have a Paypal account, but I imagine that there's some sort of record. If the printout of the order/receipt page doesn't qualify as proof of an expense, I think that's a good reason to relocate your business to a country with less tedious tax laws.
  • HunnenkoenigHunnenkoenig Member Posts: 1,173
    Paypal doesn't print a real invoice.

    You can view your payment info, but there is not even a print button.
    You can print the website from the browser, which my tax office would never accept as an invoice.

    To be honest, I really think about moving my company to Nevada, where they have no taxes at all.
  • PhoticsPhotics Member Posts: 4,172
    Hunnenkoenig said:
    To be honest, I really think about moving my company to Nevada, where they have no taxes at all.

    This might not be well known, but you can get US citizenship through running a business. Heh, from what I've read, it's a mere $500,000-$1,000,000 investment... and of course the costs associated with filing.

    I think it's form I-526 on the USCIS website...

    Immigrant Petition by Alien Entrepreneur
    http://www.uscis.gov/i-526

    Although, even if the State doesn't charge personal income tax, there's still federal. It's two fun forms every year for New York tax payers... state and federal. Business owners get to enjoy extra complication... especially if they're required to collect sales tax.
  • HunnenkoenigHunnenkoenig Member Posts: 1,173
    Cool!
    Thanks :-)
  • tenrdrmertenrdrmer Member, Sous Chef, Senior Sous-Chef Posts: 9,934
    You can get an Invoice from pay-pal a's long as you make whoever you are paying send one before you pay them. I gt invoices for some art I bought and I made him send me one before I paid.
  • tenrdrmertenrdrmer Member, Sous Chef, Senior Sous-Chef Posts: 9,934
    Oh and most states and countries have laws that if you live in there border and make money where there is no income tax you still have to pay income tax locally since that state doesn't charge it. I personally think it is crap but I have friends who have been through that by traveling for work.
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