George,

Your UK rate is wrong. It was changed to 15% last December and will stay 
at 15% until Jan 2010 when it reverts to 17.5%.

See http://www.hmrc.gov.uk/pbr2008/measure1.htm

Al.

george_c wrote:
> J,
>
> Preparing a service that will help developers 
> align themselves legitimately how to across the globe.
>
> Developers that wish to participate and take action, feel free to join.
> http://www.thepoint.com/campaigns/android-developers-international-tax-consultation
>
>
> For now, when selling across the world, set your sales tax rates 
> according to this table for EU sales (or when Market starts selling in EU)
> http://slideme.org/faq/developers/why-are-taxes-deducted-my-applications-selling-price
>
> Last one being WA, USA State tax rate at bottom would need to be 
> changed to your state tax rate.  Change that to your state you have 
> signed up to Google checkout with and any other state you have signed 
> some distribution agreement with or created nexus. You need to confirm 
> for now from your accountant what the state tax rate if for digital 
> downloads (where you are located and what you used to sign up o Google 
> Checkout)
> I will also gather info how to depict if you have nexus in other 
> states but best person will be you Accountant, that knows your current 
> activities and where you have possibly nexus.  Do hand them the link 
> to the distribution agreement you signed with Android 
> Market. http://www.android.com/us/developer-distribution-agreement.html
> as this may create nexus for you also on the state of CA also for your 
> other business activities. For CA state you don't need to apply a 
> sales tax rate as CA state is 0% for digital downloads.
>
> Will gather info and make it available at thepoint group. Will try my 
> best to invite some skilled experts to express their opinions and 
> provide some advise.
>
> George
>
>
>
>
>
>
> On Thu, Mar 5, 2009 at 6:22 AM, j <[email protected] 
> <mailto:[email protected]>> wrote:
>
>
>     Gil, How do you know developers are not charging sales tax?  I am
>     about to publish my first app and currently setting up my merchant
>     account.
>
>     George, can you elaborate on the model?  I am just a programmer... I
>     don't know sales tax rules.
>
>     On Feb 25, 5:20 am, george_c <[email protected]
>     <mailto:[email protected]>> wrote:
>     > 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
>     > chargesalestaxin 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
>     > andtaxyou. 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]
>     <mailto:[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 thetaxcorrectly. As a
>     developer (who
>     > > is incorporated) all you have to do is to specify the state
>     you are
>     > > in. If you don't, nosalestaxis added to purchases (it makes
>     sense).
>     > > The question is: should you? It seems that nobody has done it
>     (none of
>     > > the apps I seen chargesalestax).
>     >
>     > > On Feb 24, 6:58 pm, george_c <[email protected]
>     <mailto:[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 chargesalestaxin every state that you have nexus
>     > >> and within each state you also have differentsalestaxes 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
>     digitalsales, hope
>     > >> you get some insight from yoursaleschannel 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] <mailto:[email protected]>>
>     wrote:
>     >
>     > >> > Developers,
>     >
>     > >> > Does anyone know if developers should setup their Google
>     Checkout
>     > >> > merchant account to addsalestaxto 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 chargesalestax. In
>     fact I had
>     > >> > not found one that does.
>
>
>
> >


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