Generally, you pay taxes on the funds you actually receive from the crowdfunding campaign—that is, on the total amount raised after deducting costs and fees.
The final amount depends largely on who you are (individual/business/organization), what you’re offering (a token of appreciation vs. pro bono support/donation), and your tax situation.
Why are fees deducted before the payout?
This is so you don't have to "account for" a gross amount for tax purposes that you don't actually receive. The funding amount is paid out minus any applicable costs.
What determines the tax burden?
Typical factors include, for example:
- Legal form / Tax status (sole proprietorship, corporation, association, etc.)
- Type of financing
- Thank you (product/service) → may be considered a transaction subject to sales tax
- Free support with no consideration in return → may be classified as VAT-neutral depending on the setup
- Donations (for charitable projects) → specific rules (donation receipts, etc.)
- VAT status (e.g., small business exemption vs. subject to VAT)
- Costs and expenses (e.g., production/shipping) that affect profit
Important
Startnext cannot provide personalized tax advice on this matter. If you are unsure, please have a tax advisor review it briefly.
To get started, here are some insights and background information: Blog: Crowdfunding & Taxes