Fiverr Community Forum

Is Fiverr income taxable?

Is fiverr income taxable?
Will it be added to my earning from my full-time job as a bank manager?
As in my country, when a person passes a certain threshold, the taxed imposed on them increases. I want to withdraw using Paypal and if Fiverr payment is added to my net income than the tax imposed on me will be increased.

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Yes, everywhere in the world. Only the amount for which you should register/be taxed differs from country to country.
In some places like the UK you need a VAT for nearly every digital service so that you can report every income source, while here in Italy for example if you make less than 8.145,32€ yearly on occasional work you’re in the No Tax bracket, meaning you don’t have to report any income to the State or to register yourself as a single worker.

Yeah, it’s called a bracket system. See if you can circumvent it legally or if there are any deductions, or ask how other sellers from your country behave in this situation. Maybe you don’t have to lump all your income in the same report form as your day job’s.

Also please note that on paper, you’re not a freelancer for Fiverr, you’re a Fiverr subcontractor, so you’re technically “employed” twice. You need to see for yourself how your government handles this.

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For specific help regarding your tax affairs suggest you contact your local tax office or an accountant.

They will be able to help you.

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No company has special privileges that mean you can earn income from it without paying taxes on it. No country would allow that.

Your particular situation depends on your region and degree of freelance income. Talk to your accountant. The company providing the income is irrelevant. It’s what you earn and what the applicable rules are that matters.

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Yes, income is income regardless of the source.

Whether you treat Fiverr as a part time business (like I do), or a full time concern - you should be declaring your earnings for tax purposes.

This is another reason I have an issue with $5 gigs. I can’t imagine that most $5 sellers genuinely declare their earnings. If they did, then after commission and tax it would hardly be worth the effort - particularly in non-US countries that also have to allow for exchange rate and transfer fees.

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Saudi Arabia allows that. So you cannot quote “No Country will allow that”