A mistake in regards to taxes

Hello amazing Creators!

I am writing this post after learning about a mistake in regards to the default settings for adding assets. As it turns out by default new assets were marked as “Taxable” instead of “Not Taxable”.

What this means is that it is possible that taxes where added even though they shouldn’t have been because you might just take the loss, are not allowed to charge taxes or for other reasons. 

I want to be clear and state that this was an honest mistake on my part and I take full responsibility for it. My sincere apologies to you, your customers and anyone else that might be affected by this.

If you are a registered company there is no issue whatsoever and you don’t have to do anything. If you are an individual please continue reading.

What should I do?
We ask you to check whether or not there have been taxes added to your assets where there shouldn’t have been. Already existing assets might still be mistakenly marked as “Taxable” so we advise you to check if this is correct and change it to “None” if needed.

Turns out my assets were set to Taxable, now what?
By default, Creators get the charged taxes when they withdraw their balance. If you already withdrew your balance then you already have the charged amount of taxes in your PayPal account. Under most legislation taxes have to be declared to the tax authorities, something only companies can do in most cases. 

If you are not sure how to declare this with the tax authorities or can’t because of local law we will take care of it. We ask you to contact us via Discord or the Creators Hub > Messages. We’ll cover the PayPal fees and sort out everything with the tax authorities in regards to the taxes. 

How we go forward
I’ve always been a strong believer in the motto “mistakes make you stronger”. What I’ve already done is change the settings so that new assets are marked as “Not taxable” by default. Furthermore, priority will be given to have more documentation available in regards to the whole process. 

My sincere and honest apologies again to anyone affected. It was a mistake that shouldn’t have happened.

Stay Safe, Stay Strong

Ruben Oldenburg, aka Nexoness

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