I am an EU instructor and I sell mainly in the Italian market. As you can imagine I have my accountability in EUR and pretty much all my customers pay Udemy in EUR, but Udemy automatically converts all EUR into USD and of course in every conversion there are hidden currency exchange fees.
Also, we are paid in USD, but all EU instructors have to convert back to EUR. So, we lose twice on exchanges. How much do we lose? It's hard to tell, but roughly is something around the 5%. Finally, this losses in hidden currency exchange fees are hard to deduce as costs in tax declarations, so you might lose a third time. If you cannot detract the conversion fees as costs because PayPal hides them, you pay taxes on them like you do with your profits.
Let’s wrap it up. Your customer pays Udemy in EUR, Udemy converts in USD applying conversion fees (1). You are paid by Udemy in USD, and you convert back to EUR paying hidden conversion fees (2), which according to PayPal are around 3% or 4%. After a double conversion-pointless fee you have to pay taxes but PayPal and Payoneer do not provide you with any clear statements on hidden currency conversion fees so you can hardly deduce them as costs on the tax declaration and you might pay taxes on them as well (3) depite they are no profit at all. As you can see you can lose 3 times with this system
Now, of course I would like to have my turnover increased by +5% with a better system. I would like also to simplify my accountability. And, since Udemy pays the VAT to EU Governments in EUR, not in USD, I would suggest an implementation of the payment system in order to pay us straight in EUR
In the spirit of collaboration and in order to create a better working environment for everybody, who would like to talk about a more efficient system like this?
It would be a very nice piece of implementation 😉