a. Income tax
The contributions you receive through your Community page are not regarded as tax-free gifts, but as taxable income, because you offer your backers exclusive content in return. You must declare this income yourself in your tax return.
If you run your Community page regularly and with a certain degree of organisation, it may be considered self-employed work for tax purposes. In Switzerland, this can involve additional obligations, including:
- AHV social-security contributions.
- A certain bookkeeping obligation.
What this means for you:
- wemakeit provides an annual overview of your earnings that you can use for your tax return.
- Declare this income yourself in your tax return. wemakeit does not do this for you.
- If you are unsure – for example, whether your activity qualifies as self-employed work – clarify the matter early with your tax authority or a tax adviser.
b. Value added tax (VAT)
Because your backers receive a specific reward in return, such as exclusive content, this is generally treated as an exchange of services for VAT purposes rather than as a donation.
You become liable for VAT once your turnover from this activity exceeds CHF 100,000 per year. The relevant amount is the full contribution paid by your backers, not only the share we pay out to you.
What this means for you:
- wemakeit provides a monthly statement that you can use for your bookkeeping or VAT return.
- Keep an eye on your turnover, especially if it is approaching CHF 100,000 per year.
c. Tax-exempt Community initiators
If you are a tax-exempt Community initiator, your backers may, in some circumstances, be able to deduct their contributions from their taxes. To do this, you must issue them with a donation receipt that confirms tax deductibility.
We are happy to help with questions about statements through wemakeit. For tax questions relating to your individual situation, we recommend consulting a specialist.