Fwd: How to Change the World – Royalties and Taxes

[Jurgen Appelo]

And this one too...

Royalties always means net profit in the publishing business, after deduction of variable expenses (costs per sale).

VAT is also not included in the royalties and must be subtracted.

Jurgen

---------- Forwarded message ----------

one more important question.

The agreement we have says that we shall pay you 50% of book royalties.

We must clarify: does that mean 50% of the price we sell at or the profit that we get from each sale (so price minus variable-costs of the sale, for our current setup that would be: price - PayPal commission). Either way we will eat the fixed-costs (we hired an editor to corrent our translation)

We should also probably substract the Polish VAT so that you can add Dutch VAT, right?

Translationally, Michał