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When does PayPal report my income to EU

Discussion in 'Business & Tax Advice' started by zeronine, Oct 6, 2016.

  1. zeronine

    zeronine Registered Member

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    Hi,

    I would like to know from someone who has experience in this things,

    When does paypal send your government income reports for taxes?

    I know that for USA is 200 transactions AND $20.000, but I can not find anything about EU except that
    you have to send them copy of id and proof of address when you receive more than $2.500.
     
  2. iSearcher

    iSearcher Registered Member

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    The question is not clear, as for personal and corporate account there can be a lot of differences.
    It depends on regulation laws of your country and monetary politics.
     
  3. theconscience

    theconscience Regular Member

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    Uk are out of the shitty EU
     
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  4. damagesmith

    damagesmith Regular Member

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    No I dont think the UK is out. They may have voted to withdraw form the EU. But right now they are still part of the EU.
     
  5. islandman1010

    islandman1010 Elite Member

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    Sorry to disappoint you but we are still in it for quite a few years yet if not for good.
     
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  6. RuthSam

    RuthSam Jr. VIP Jr. VIP Premium Member

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    So far I didn't see it on my tax report at all... it may be only if you tell your tax office that you have an PayPal account that they will know about it or if the tax office can see PP transactions on your bank statement and then start investigation that they get these information.
     
  7. HoNeYBiRD

    HoNeYBiRD Jr. VIP Jr. VIP

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    You couldn't find anything, because Europe is not a country. If you search for Europe or EU, you won't find anything, because there ain't no such collective regulation. Each and every European country has different monetary laws regardless that they're part of the EU or not. I think PayPal doesn't report you automatically in most European countries. But don't take my word for it, try to search on Google for specifically your country, if nothing comes up, it can mean that there's no such regulation. But if you want be 100% sure, talk to a tax expert in your country, who knows his/her way around the internet too.

    I live in an European country, which is part of the EU and we don't have such regulation (yet).
     
    Last edited: Oct 12, 2016
  8. zeronine

    zeronine Registered Member

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  9. BloodyNinja

    BloodyNinja Power Member

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  10. zeronine

    zeronine Registered Member

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    Yes, but he mentioned PayPal as well, PayPal is registered in Luxembourg as a bank for EU. And all banks will be required to send information to tax offices.
     
  11. sub001

    sub001 Regular Member

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    Europe tries to standardize things (such as reporting), but HoNeYBiRD is correct: individual countries make their own legislation. Personally, I assume that my Paypal info makes it to my country's tax office, sooner or later (it's not the case right now) and I make arrangements to that effect. Also, if you are being investigated by tax authorities, they can request additional information from Paypal (or elsewhere). One more thing, the rules can easily change in the future and might apply retroactively. The biggest lesson probably should be to never assume you're out of the woods.
     
  12. BloodyNinja

    BloodyNinja Power Member

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    Googled it now and it relly seems that Europe is the only place where PayPal has a banking license. From Luxembourg as you said.
    I guess we are all fucked up then :)
     
  13. oni365

    oni365 Jr. VIP Jr. VIP

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    So is there any other way to avoid paying taxes? I know that only when you withdraw money to your bank account /credit card only then the authorities can see your incomes.
     
  14. preyt

    preyt BANNED BANNED

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    Guys, if you don't earn BIG money (and by that I mean more than $xx.xxx per month) you shouldn't bat an eye. My PP account is currently seeing $xxxx per month and, on top of that, I'm withdrawing the money to a local bank account, so I'm further exposing myself to the so-called "taxmen". Nobody has ever asked me anything in over 5 years.

    Thing is, you forget that your bank account information is supposed to be private (at least in theory), so legal authorities need to be legally able to put you under investigation so as to access any sensitive information. Nobody will bother for a few bucks.

    If you reside in a poor country, that is even less of a concern.

    I'm not sure whether someone will come knocking at my door in the near future, but given the fact I have literally done nothing to avoid paying taxes on my earnings until now, I'm fairly sure nobody will ever bother. :)

    P.S. I'm European.
     
    Last edited: Jan 3, 2017
  15. forinnov

    forinnov Registered Member

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    Does somebody know Italian specify on the subject?
     
  16. bartosimpsonio

    bartosimpsonio Jr. VIP Jr. VIP Premium Member

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    Funny. People vote to get out, but the UK remains. Whatever.

    Nobody knows the specifics of any country. This is a secret in any bank, unless you know someone in there it's basically impossible to find out.
     
  17. forinnov

    forinnov Registered Member

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    I meant the specify of Italian authorities' taxation <- - -> PayPal
    So, will PayPal notify Italian authorities somehow about the account's balance, transactions, etc.
     
  18. bartosimpsonio

    bartosimpsonio Jr. VIP Jr. VIP Premium Member

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    That is secret.

    I have worked in the financial business before. Some governments require all financial institutions to file a nightly report with all movement.s

    Others require only that when queried about someone, you reply with the data.

    So you'll never know how they do it.

    I do know that Finanza are tough as fuck.
     
  19. RuthSam

    RuthSam Jr. VIP Jr. VIP Premium Member

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    Well I don't believe it to be a secret more than that you have to check the OECD's explanation of the new CRS that was introduced last- and this year. If you read this carefully you will see that any licensed financial institution, bank and similar has to report you. There is nothing like anonymity any longer nor should you expect any bank not to report you even if they say so!

    That in mind, I know there are information out there that say that the banks won't report under certain conditions.. forget it. the CRS makes it pretty much clear.