Since this topic was discussed in chat today let's have a closer look. And this is just an example.
Some pretty standard example with a rather low income scenario
Recently VAT was added to subscriptions, depending on local law, it does for example apply for EU countries where most of our subscribers happen to be located.
A typical subscription for 1 month with PayPal from Germany is currently 6.01$.
Of this total 96 Cent are VAT. Another 6 Cent are fees for the payment system.
2.50 go to Twitch.
Leaves 2.50 for the channel, before taxes...
Lets assume you are in Germany and your gross earnings 20.000 Euro per year, most of it from a regular job as an employee and a small part of it from Twitch. Considering German legislation for taxes, social insurance, etc. this would mean ~ 1176 Euro (1318 USD) net income per month which is just enough for a really humble lifestyle in Germany, right?
In that model of the 2.50 from the subscription you would have to pay ~17 Cent taxes on income.
Of the original 6.01 a subscriber had to pay you would get ~2.33 USD (2.08 Euro).
(Just for comparison: considering the average gross income of an full-time employee in Germany the tax on income would be ~0.53 USD (0.48 Euro), resulting in 1.97 for the broadcaster from a 6.01 channel subscription)
And in a table with the assumptions and model of above:
Some further considerations:
Some pretty standard example with a rather low income scenario
Recently VAT was added to subscriptions, depending on local law, it does for example apply for EU countries where most of our subscribers happen to be located.
A typical subscription for 1 month with PayPal from Germany is currently 6.01$.
Of this total 96 Cent are VAT. Another 6 Cent are fees for the payment system.
2.50 go to Twitch.
Leaves 2.50 for the channel, before taxes...
Lets assume you are in Germany and your gross earnings 20.000 Euro per year, most of it from a regular job as an employee and a small part of it from Twitch. Considering German legislation for taxes, social insurance, etc. this would mean ~ 1176 Euro (1318 USD) net income per month which is just enough for a really humble lifestyle in Germany, right?
In that model of the 2.50 from the subscription you would have to pay ~17 Cent taxes on income.
Of the original 6.01 a subscriber had to pay you would get ~2.33 USD (2.08 Euro).
(Just for comparison: considering the average gross income of an full-time employee in Germany the tax on income would be ~0.53 USD (0.48 Euro), resulting in 1.97 for the broadcaster from a 6.01 channel subscription)
And in a table with the assumptions and model of above:
| Subscriber pays | 6.01 |
|---|---|
| To tax authorities via VAT | 0.96 |
| To payment system | 0.06 |
| To Twitch | 2.50 |
| To tax authorities via tax on income | 0.15 |
| To channel/broadcaster | 2.35 |
Some further considerations:
- depending on country of the subscriber the VAT might be higher or lower, for example VAT is 17% in Luxemburg, 19% in Germany, 20% in the UK, 25% in Denmark and 27% in Hungary
- depending on country of the broadcaster the tax on income might be higher or lower
- depending on total income of the broadcaster the tax on income might be higher or lower, although much lower is hardly possible
- the split between Twitch and "top" broadcasters might be different
. So please tell me: are there other ways to support Ludophiles? I know about GOG, but my PC gaming is placed back at the moment.