Google won't determine where you have nexus. You need to know this and submit taxes collected to all the states you have nexus. You need to charge sales tax in all the states where you have nexus. Nexus can be created even by an agent.
Unfortunately, it has been mentioned that developers need to manage all taxes & liabilities on their own. There is a model that works and takes the weight away from the developer. I can expand on it if most developers would be interested in such a solution. I quote: "Nexus = connection. If you have nexus with a state, they can grab you and tax you. If you don't, they can't. Think of it like an electric socket. If you have no nexus it can't shock you, but stick your finger in it and watch your hair curl." George On Wed, Feb 25, 2009 at 7:14 AM, Gil <[email protected]> wrote: > > Regarding the nexus question: I thought that Google Checkout handles > it. In other words if you specify from what state your business is, > Google Checkout would calculate the tax correctly. As a developer (who > is incorporated) all you have to do is to specify the state you are > in. If you don't, no sales tax is added to purchases (it makes sense). > The question is: should you? It seems that nobody has done it (none of > the apps I seen charge sales tax). > > On Feb 24, 6:58 pm, george_c <[email protected]> wrote: >> All of you should be careful of where you have nexus, meaning where> you >> have some business activity (not only presence) and keep aware >> that you need to charge sales tax in every state that you have nexus >> and within each state you also have different sales taxes and then you >> may also need to manage your B&O side of things. Hey, the list goes >> on.... >> >> 2009 is the year the IRS will be cracking down on digital sales, hope >> you get some insight from your sales channel you are stocking your >> apps to. >> >> It's illegal to sell anything into the EU without charging VAT. Are >> you collecting VAT? Who is collecting it for you? >> >> Question you should ask your CPA. Who is selling your app? Are you >> selling it as a developer or do you have a reseller lined up >> somewhere? Why are you using your own Google Checkout account to >> sell? So who is selling your app? >> >> Good luck. >> >> George >> >> "tried to help the small developer, has anyone listened?" >> >> On Tue, Feb 24, 2009 at 7:44 PM, Gil <[email protected]> wrote: >> >> > Developers, >> >> > Does anyone know if developers should setup their Google Checkout >> > merchant account to add sales tax to transactions. I know how to set >> > it up I just wonder if it should be setup. I am interested in US >> > originating transactions (at least for now). >> >> > It looks like most applications do not charge sales tax. In fact I had >> > not found one that does. > > > --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Android Discuss" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/android-discuss?hl=en -~----------~----~----~----~------~----~------~--~---
