> Could you explain why accepting tips is so complicated? What specific law means you cannot do it?
I can't speak for the OP and the GP, but I can shed some light on this for which problems I could run into in germany:
* I own a company (GmbH, limited liability). Bookkeeping rules are fairly strict, I can't accept random money from random people without having an entry in a ledger. It's possible, but if it's single digits then it's probably more work than it's worth. I'd also have to figure out how to legally accept money from the US or whatever country this money comes from.
* I could accept the money as private person. Then I'd still have to keep books and add that to my private income. That probably would also be more work than the attached payoff.
* Not keeping books or declaring the donations may draw the scrutiny of the tax authorities. If you're accepting a lot of small cash gifts you might also run afoul of money laundering regulations.
> Let me put this another way. If your friends give you money for your birthday, do you give it back to them and tell them you can't accept their gift because of tax and regulation?
Gifts from friends and family are specifically exempt from income tax regulations, so you're attacking a strawman here.
I can't speak for the OP and the GP, but I can shed some light on this for which problems I could run into in germany:
* I own a company (GmbH, limited liability). Bookkeeping rules are fairly strict, I can't accept random money from random people without having an entry in a ledger. It's possible, but if it's single digits then it's probably more work than it's worth. I'd also have to figure out how to legally accept money from the US or whatever country this money comes from.
* I could accept the money as private person. Then I'd still have to keep books and add that to my private income. That probably would also be more work than the attached payoff.
* Not keeping books or declaring the donations may draw the scrutiny of the tax authorities. If you're accepting a lot of small cash gifts you might also run afoul of money laundering regulations.
> Let me put this another way. If your friends give you money for your birthday, do you give it back to them and tell them you can't accept their gift because of tax and regulation?
Gifts from friends and family are specifically exempt from income tax regulations, so you're attacking a strawman here.