So there.

after 16 monthes of hard work I finished my game project, Goose Chase (http://www.gilzu.com/). The demo/full version is all done, beta testing, a totaly new web store site.

So i'm going to the IRS, since in Israel (and in almost every country i know of) you have to declare that youre selling something so they will be able to deduct income tax. furthermore, i saved the signing process with my e-commerce solution and file downloading service till i go there so it will be tax deductable.

so i'm going there, taking the bus (car is in the garage) and in the meantime reading newspaper about the latest news since i'm in a total detachment from the outer world when i'm programming. so there it is, a big title saying thats theres a big economic strike due to gov's new reforms. bah. no social security, tax/IRS officials, import/export. no publishing for me. no launch day.

its like that for the past week and I'm about to go crazy.

My answer can be totally wrong because I don't know the situation in Israel, but... why don't you just go ahead?

Originally posted by ggambett
My answer can be totally wrong because I don't know the situation in Israel, but... why don't you just go ahead?

Especially because I'm really curious to see this game! :)

Well you could always release a version on this board to get some feedback in the meantime.

Originally posted by gilzu

So i'm going to the IRS, since in Israel (and in almost every country i know of) you have to declare that youre selling something so they will be able to deduct income tax.

I think here (in the US) you can report the income on your personal income statement if it's not very significant. I don't see why you can't just do the same -- just start selling the game and register later. If they give you trouble later just make it clear to them that you couldn't possibly register due to the circumstances. And if they still give you trouble, say that this is your primary source of income and you were going to starve to death if you didn't start selling it, and that you obviously are worth more to them as a tax payer alive than dead. :)

Im pretty sure if you do not have another job (ie student), you wouldnt even have a personal income statement...and you do not have to declare the sales until you reach a minimum amount yearly...

Will look into it.

Originally posted by Fenix Down
I think here (in the US) you can report the income on your personal income statement if it's not very significant. I don't see why you can't just do the same -- just start selling the game and register later. If they give you trouble later just make it clear to them that you couldn't possibly register due to the circumstances. And if they still give you trouble, say that this is your primary source of income and you were going to starve to death if you didn't start selling it, and that you obviously are worth more to them as a tax payer alive than dead. :)

There are two annoying stuff about this:

1. By the Israeli law, you have to declare about every NIS (New Israeli Shekel, our beloved currency. not.) you earn from the moment you start working. or else? you pay added tax.

2. which worries me most: most of the expences will come before ill get my check form the e-commerce solution (IF/WHEN ill get it ;) ). so if ill start doing them now, expences before declaring to the tax officials arent tax deductable. bah.

@Midnight & Nexis: I thought about it, but i had about 50-60 people to test the beta. I'm too afraid to lose sales by leaking this into the forums.

furthermore, the things i've done in the last week...
Did some improvements that made me think that this strike is a good thing (I DID NOT SAY IT!!!!)

Originally posted by gilzu
... I'm too afraid to lose sales by leaking this into the forums.


How can you loose sales with that? Shouldn't it be the opposite?

ergas

You can ask a specialized consultant or lawyer for some fresh advice. I don't think this can be seen as a big problem, because I think you aren't selling the game official in the first place. The sales provider is acting as a sales agent. However your website is in reality an online store. When you don't have an income you can ask your parents (who have a stable income) to register at the chamber of commerce. So in that case when you have a good relationship with your parents (or perhaps someone else you can trust) go a head. But to be sure make a legal written agreement (ask a lawyer for help) and you and your parents must sign it. It cannot be the situation that you pay tax without any income, that is really strange. Mostly when you can't give any clue about the income of your business (or it's too low) you aren't seen as a real company to pay tax. So you are free of it. When the financial situation is changed you must submit this of course to your tax inspector. This is in my country the situation. And it's to my opinion very logical.

i don't know the situation in israel but like johnson said this sounds really strange. if this is just a temporary time of reforms and changes in your country then i would just delay registering the company and prepare your business besides doing a "normal" job. but if this situation is a standard then i can't imagine how the young and fresh companies there can even start up in the first place.


about the expenses before registering and making things "strategically" tax deductible. i think this really involves some heavy planning and a decent business plan + lawyers. i'll soon be in the same situation but in my country it is easier because the law allows to earn some three-thousand euro's without paying taxes on it. i couldn't think of another logical way for a company to start growing.

The frustration continues.

the strike is still on and all clerks are on strike which means that i cant register myself as a private person who makes any earnings.

I keep making new adjustments to the game, and prehaps thinking of a new one to do in the mean time.

bahhhhh....