EU IRS laws

[aimar8]

I know Paypal sends data to US IRS when you exceed $20000 of income and 200 incoming transactions.

But what are the limits in Europe Union? I'm from Slovakia not UK. Does anyone know the limit in €?

[PayPal_Sophie]

Hi aimar8,

Welcome to the Community Forum! Within the EU, there is a receiving limit of €2,500 EUR. When you reach this limit received through your account, we will request additional information from you. This is in regulation with EU compliance laws, which require that we request additional verification from our customers who are receiving funds.

Here’s how to remove the receiving limit on your account:

1. Go to www.paypal.com and log in to your account.
2. Click ‘View Limits’.
3. Select ‘Receiving limit per year’ and click ‘Lift Limits.’
4. Follow the instructions.

If you don’t have a Business account but you sell items on eBay or on your own website, select ‘Individual’ from the ‘Business Type’ menu and then complete those sections that apply to you.

Hope this helps!

Sophie

[aimar8]

Hello Sophie.

Thanks for your reply but I think you misunderstood me a little bit. 

I know about this. My account is already verified and I don't have limits. €2,500 is limit, as I understand it has nothing to do with tax.

I found this - http://www.ehow.co.uk/how_6177784_declare-paypal-income.html
according to the article in UK, the limit is £13,000 and 200 payments per year which is very similar to the US law (£13,000 ≈ $20,000).

I just want to know the exact amount in €. I guess it's the same across the EU.

[PayPal_Sophie]

Hi aimar8,

Thanks for clarifying 🙂

As a non-US resident who does not have a US PayPal account, you are exempt from paying tax within the US. From our side, we won't forward your information to the IRS or ask you to declare your earnings through PayPal to the IRS.

However, you would need to contact the taxation authorities in your own country to find out what obligations you may have in this regard, as PayPal do operate under a banking licence within the EU. I'd also recommend contacting your accountant if you have any concerns or queries.

Hope this helps,

Sophie

[Brucelats]

Hey!

I have similiar question. I am also from EU. Croatia. I have visited our tax service and asked them about taxes on my PayPal income and they had no clue. I am paying taxes, around 45% of all what I earn. This is the rule here, unless you found a company. I am runing business but not yet as a company, i am in process of that.  This what i am paying is normal taxes for all the income you get beside your own regular work, our internet earning taxes are not so regulated, that is bad, so we need to pay high tax.

Anyway! I really want to know what happens in European Union from PayPal side when someone reaches the limit. Like, when my account reaches around 18k euros and 200 transactions, what does PayPal do? Coz if reports come then i can possibly discuss and explain with tax services on my payments and potentialy reduce the tax i pay.

Looking forward for answer!

Cheers!