Fiverr Community Forum

What moment should I consider my revenue as taxable?

Fiverr Site
#1

For tax purposes, we need to account for the money earned, obviously.
Normally it’s when I invoice a client, then the invoice date is the official moment the revenue becomes eligible for taxes.
But since Fiverr doesn’t work with invoices and takes time for clearance, what moment should I pick to consider the money earned for tax purposes:

  1. Moment of order completion
  2. Moment after clearance
  3. When the money is withdrawn and hits my bank account?

I’m curious to hear how other sellers deal with this.

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#2

good topic bro…in today

#3

I guess you would need to ask your tax advisor or authority to get right advice.

As far as taxes are concerned, I would by no means rely on advice on forum.

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#4

Well the problem is most tax advisors are relatively new to this kind of online platform construction so there is no guarantee they’re right, or maybe they overcomplicate things. There is no clear and specific regulation from tax authorities either, they’re hopelessly old-fashioned when it comes to digital platforms like Fiverr, especially when based in another country.
So my first thought was to simply ask sellers here who have already dealt with this issue.

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#5

Generally governments only care about money once it’s in your bank account. Until then it isn’t really income.

I just report Fiverr as a client. They aren’t really, but Fiverr is the one who is paying me and that’s all that really matters.

I think what confuses accountants is that Fiverr is a marketplace with a product model, but you’re selling services.

And products and services are dealt with differently in taxation and reporting.

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