I often visit this community in search of additional information that would help me in the development of my projects. But unfortunately, I encountered a problem that for some reason (perhaps there is a reason, but I don’t know it)) is not described in any of the discussions.
We are talking about a 23% tax on top-up for using the assistant.
On small volumes of use the tax percentage is not felt, but due to the successful implementation of my applications based on existing models from OpenAI, my costs have increased enormously. I will try not to talk about specific amounts, but for your better understanding, I will give an example.
If you try to top up your balance by $1000, the tax is $230.
In this regard, a question arose. What options and opportunities are there that could reduce this tax?
Thanks for the answer. @jr.2509
I agree that the question is not entirely relevant to the developer industry. But I have hope that someone in this community has already asked a similar question, and perhaps knows what the percentage of this tax depends on. Unfortunately, I can’t find information on this issue.
This is a developer community forum, I suggest you speak with your accountant about how to deal with taxes, generally speaking though your best option is to just pay the tax & avoid further issues.
The VAT is applied on top of the price of the service you are purchasing from OpenAI. The way prices are presented differs from jurisdiction to jurisdiction. In the US, where OpenAI is incorporated, prices are generally without VAT. It is assumed that the customer will know. In Germany, prices without VAT are only shown to actual business customers and private end customers must be shown the price with VAT, as another example.
In some jurisdictions a registered company can file a VAT tax return with their tax agency at the end of the fiscal year. It implies that the services have ultimately been consumed by a end customer other than the company buying credits from OpenAI. This comes with several requirements of course.
And from here you will need to do your own research but as it stands the VAT can be a recoverable expense based on your specific country of incorporation and by whom the API credits have been used.
As the others have pointed out: you need to do your own research but this should help you get on the road.