FAQ – Taxes
How does identification with IDnow work?
Here we show you how to identify yourself with IDnow. Once you have successfully passed through all the steps and completed the process, you will receive written confirmation from us within a few days.
Diamonds and cashout
Your viewers can gift you diamonds during your live videos. You can also gift diamonds to show streamers that you appreciate them. To see how many diamonds you have collected, click on the profile symbol in the top right-hand corner of the app. Now you can see the number of diamonds you have received under your credits.
Here you have the option of redeeming your diamonds in the form of a cash or credit reward. A cash reward is where the diamonds you have collected are paid out to you in cash. If you select the credit reward, you can convert your diamonds into credits and use them to give gifts to others in their streams.
Do I need to pay tax on my diamonds?
First off, you are responsible for the taxation of the diamonds you receive on our platform. LOVOO cannot and must not assess whether diamonds are considered taxable income for you or not.
However, if you regularly receive diamonds on our platform, it appears that you need to report this to the Tax Office. Only a tax consultant can provide you with precise and binding information. Please note that neither our Customer Service team nor the Talent Management team can or is allowed to provide information on tax legislation.
Why should I declare my income?
Declaring your income to the Tax Office and paying the taxes that may arise mainly serves to protect you.
You owe taxes depending on whether you are registered with the Tax Office and state your income on your tax return or not. On the contrary, if you fail to do so, this may amount to a tax offence and result in penalties on the taxes owed. Taxes can even be determined 10 years down the line.
What are the first steps I should take if I earn money from streaming?
If you think that you are liable to taxation on the basis of your income, you should contact either a tax consultant or a business incubator in your city. You can also find information about this online. The following generally applies: It is better to look into this sooner rather than later.
What are the advantages of registering as a contractor?
At first glance it’s annoying that you have to pay tax on your income.
But this is the only way
- to be compliant with the law and not have to worry about fines and penalties due to tax evasion.
- you can deduct expenses that arise in connection with your streams, e.g. your new iPhone and entertainment expenses, as operating expenses. These expenses are offset against your income and reduce your net profit. This means that you need to pay fewer taxes. You only need to pay taxes on your profit, i.e. income minus your operating expenses.
Important: Keep evidence of these, such as invoices or receipts.
- Many professional providers, such as equipment sellers and advertising agencies, only work with verifiable professionals and registered contractors or offer lower prices.
- You can apply for subsidies or start-up grants on the basis of enhancing the quality of your work.