Do I need to charge/pay sales tax or VAT when my LLC gets donations?
I was wondering whether I need to pay any form of sales tax or VAT (or similar taxes in other countries different from the US or EU) when someone makes a contribution.
My LLC is a normal for-profit company but as the "customer" would not get anything in return for making a contribution, in my opinion, there would be no sales tax due because there is no product or service provided in exchange for the payment.
I simply state on my website what all the funds in my LLC (and therefore also the contributions made by anybody) are used for.
Obviously I would need to include the contributions in the normal LLC income.
A follow-up question would be - as I am not a US resident and my single-member LLC is therefore treated as a disregarded entity - whether the contributions from people in the US count as effectively connected income such that I would have to pay US income taxes on it?