I'm based in the US and if I go into my google checkout merchant
account and go into tax settings, there are only options for setting
tax rates for US states. Aren't we supposed to charge VAT taxes if we
sell ( via Android Market/Google Checkout) internationally??

Not that I would know how to actually pay those countries their taxes.

Do I in fact owe taxes to other countries if I'm in the US and selling
software (apps) say to the UK? My company has physical presence in
only one US state. For sales to US customers that typically means I
only have to charge (the customer) and pay (the state) sales tax when
the "shipping address" of the customer is in the same state that my
company has a presence in.

But how is it supposed to work for sales from US to other countries,
and where do we set this up in Google Checkout and how (if in fact we
owe those countries their tax money) do we actually go about paying
them???

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