Hi,

If you take a look a few posts above, I believe International taxes
may be taken care of already?

Besides, what are they going to do, I mean, is the UK going to come
after me in the US if someone in their country bought my app? Not sure
how that would work out.

I mean I'm wondering are we even big enough fish for anyone to care
about pursuing this anyway..

-niko

On Nov 11, 10:18 am, Steeler <[email protected]> wrote:
> I think that in the U.S., sales tax is only charged if the buyer is in
> the same state as the seller and there are no federal sales taxes.
> There's a good chance I'm wrong, though.
>
> However, dealing with international tax laws sounds like a huge
> disincentive to sell on the Android Market... is there any chance that
> you can choose an "only sell to U.S. buyers" setting?
>
> On Nov 11, 7:45 am, RichardC <[email protected]> wrote:
>
>
>
> > IANAL
>
> > There are 2 sorts of taxes we need to concider "sales tax" and "local
> > income or corporate tax".  Taking "sales tax" first:
>
> > Because the "sales tax" laws are so complicated especially with
> > international transactions I do expect a market site (Google Market)
> > to provide this for me as part of the percentage fee they charge.
> > This includes tracking and changing the taxes applied (to each sale)
> > as relevant tax laws in each country change.  It is impossible for
> > small developers to investigate and implement all the local sales
> > taxes especially as there is still disagreement (especially with
> > internet transactions) regarding which country (or even state in the
> > US) the point-of-sale takes place in.
>
> > "Local income or corporate taxes" are another matter and should NOT be
> > processed by the market provider.
>
> > Have a look Handango for an example of this being done better.
>
> > In addition I have two thoughts about selling in the EU market (if I
> > am correct IANAL) :
> > 1. In the EU it is not legal to display prices (to end-users) that do
> > not include all taxes and delivery charges.  That is the prices should
> > not change beteen the listing screen and the final purchase screen.
> > 2. Who is the customers (end-user) relationship with (a) Google or (b)
> > the Developer.  I believe it is Google which puts the onus on Google
> > to display the "correct" and final price.
>
> > In summary I am disappointed in the approach Google is taking at the
> > moment and I am hoping that they will do better in the future.
>
> > IANAL
>
> > --
> > RichardC
>
> > On Nov 11, 11:48 am, niko20 <[email protected]> wrote:
>
> > > IF you look at the original posting, he says "how does the money get
> > > to the US government", so he WAS talking more about federal taxes. For
> > > us in the US, that's just a Schedule C form that you fill out. Also, I
> > > agree tax law for online purchases really is a not-well-defined area
> > > yet - such as state taxes. Each state has their own laws about it.
>
> > > For those in other countries, just do some research on tax laws in
> > > your country.
>
> > > It basically comes down to this - do some research. When it's stuff
> > > that is law, like taxes, the info will usually be out there on the web
> > > on a government website, etc.
>
> > > -niko
>
> > > On Nov 11, 2:57 am, Cédric Berger <[email protected]> wrote:
>
> > > > On Wed, Nov 11, 2009 at 05:49, Arron <[email protected]> wrote:
>
> > > > > Sales tax is usually imposed onto the buyer so by not collecting these
> > > > > up front, developers are now charged for this amount.  Inside Google
> > > > > Checkout, they have an area where you can specify sales taxes but I
> > > > > have to manually input all the percents.  Maintaining the right sale
> > > > > tax %, informing buyers about this (since they will freak out), and
> > > > > separating this out from your normal income will be a big HASSLE.
> > > > > Additionally Google Checkout in general offers the poorest reporting
> > > > > features I have seen from any of the other competitors.
>
> > > > > Companies pay heavy money for accounting firms to do this for them.
> > > > > As a developer, I have to take care of all of this?? I am unsure of
> > > > > what to do and will probably do it wrong.  And considering that I did
> > > > > not impose any sales taxes to my buyers so far, I will need to pay all
> > > > > of that out of my own pocket.
>
> > > > > Apple calculates ALL of this for you and is included in their 30%
> > > > > cut...
>
> > > > > Android Market is terrible and Google/Android in general has no idea
> > > > > what the heck they are doing.  I wonder if they even thought this out
> > > > > correctly at all.
>
> > > > > On Nov 10, 8:22 pm, Brian Conrad <[email protected]> wrote:
> > > > > > I'm not a tax attorney either and yes having been a contract 
> > > > > > programmer
> > > > > > for years I know the form C and 1099 stuff.  But the Google clause 
> > > > > > is
> > > > > > about the developers collecting sales tax.  I'm not sure that is 
> > > > > > even
> > > > > > legal.  It would be like asking Kraft Foods to collect sales tax for
> > > > > > their products sold at Safeway.   If Google is going to operate a 
> > > > > > market
> > > > > > I believe under the law they are liable for collecting the taxes 
> > > > > > not the
> > > > > > vendors.  But I'll be looking some more at the agreement tomorrow.
>
> > > > > > - Brian
>
> > > > > > niko20 wrote:
> > > > > > > Hi,
>
> > > > > > > I'm no tax lawyer, but in the past years I've done contract jobs 
> > > > > > > on
> > > > > > > rentacoder.com, they don't do any tax stuff either, but at the 
> > > > > > > end of
> > > > > > > the year you get a 1099 form. I'm assuming Google may send us one 
> > > > > > > of
> > > > > > > those. If not, you can report your income anyway in the U.S. on a
> > > > > > > Schedule C form. It's not really that hard. It's called self
> > > > > > > employment tax.
>
> > > > > > > The big benefit is you can deduct anything that is a business 
> > > > > > > related
> > > > > > > expense before applying the tax. Last year you could deduct up to
> > > > > > > about $5000 without having to itemize the deductions.
>
> > > > > > > Just check out the irs.gov website, it explains everything pretty
> > > > > > > well.
>
> > > > > > > -niko
>
> > > > > > > On Nov 10, 9:13 pm, Brian Conrad <[email protected]> wrote:
>
> > > > > > >> This whole area of taxes for online purchases is rather gray.  I 
> > > > > > >> also
> > > > > > >> sell products using Digital River with their SWReg service.  
> > > > > > >> They take
> > > > > > >> care of all tax issues and have the software in place for it.  
> > > > > > >> With
> > > > > > >> Digital River taxes are only charged in states where they have 
> > > > > > >> offices
> > > > > > >> or states that have passed tax laws for online purchases.  They 
> > > > > > >> may
> > > > > also
> > > > > > >> charge VAT taxes for countries that are applicable.  The 
> > > > > > >> developer
> > > > > > >> doesn't have to worry about it.
>
> > > > > > >> Google not being as mature a company as Digital River must not 
> > > > > > >> be up
> > > > > to
> > > > > > >> building such an infrastructure.  Either that or a lazy legal 
> > > > > > >> counsel
> > > > > > >> who thinks they should just dump the issue on developers.
>
> > > > > > >> Brian Conrad
> > > > > > >> JyotishTools.com
>
> > > > > > >> Arron wrote:
>
> > > > > > >>> WOW the more I read, I am getting disheartened by Google's 
> > > > > > >>> approach.
> > > > > > >>> Apparently developers have to handle ALL SALES tax on their own.
> > > > > > >>> Seriously can they make a life of a developer harder?  Apple's
> > > > > > >>> AppStore handles all taxes for you and Google Android Market 
> > > > > > >>> does
> > > > > > >>> not?  Are you serious? A small developer like me can really 
> > > > > > >>> figure
> > > > > out
> > > > > > >>> what to do with sales taxes for US and other countries in the 
> > > > > > >>> world?
>
> > > > > > >>> Sometimes Google's approaches make them seem so immature 
> > > > > > >>> compared to
> > > > > > >>> other companies.  Do they even know what they are doing?
>
> > > > > > >>> At this point, I am unsure what to do at all.  I have tons of 
> > > > > > >>> sales
> > > > > > >>> sold without any taxes imposed onto the buyer.  How do I report 
> > > > > > >>> this
> > > > > > >>> back to the tax agencies?  I might have to go to the route of 
> > > > > > >>> hiring
> > > > > a
> > > > > > >>> tax consultant just to deal with this and Google thinks 
> > > > > > >>> developers
> > > > > > >>> will flock to Google to do this type of BS?
>
> > > > > > >>> What is Google thinking?!  Please tell me I am totally wrong on 
> > > > > > >>> this.
>
> > > > > > >>> On Nov 10, 5:19 pm, Arron <[email protected]> wrote:
>
> > > > > > >>>> I have been selling my application on the Android Market for 
> > > > > > >>>> over a
> > > > > > >>>> period of 6 months.  I wasn't aware of all the tax issues that 
> > > > > > >>>> I
> > > > > have
> > > > > > >>>> recently been reading about.
> > > > > > >>>> I have read various threads about seller taxes and now I am 
> > > > > > >>>> deeply
> > > > > > >>>> confused on what to do.
>
> > > > > > >>>> 1) I do not see any developers charging sales tax at all for 
> > > > > > >>>> their
> > > > > > >>>> applications
> > > > > > >>>> 2) Do I need to charge sales tax?
> > > > > > >>>> 3) Is there a chart anywhere to tell me what sales tax I should
> > > > > input?
> > > > > > >>>> 4) Once I input the sales tax and the buyer gets charged, does 
> > > > > > >>>> it
> > > > > > >>>> automatically go to the US government?
>
> > > > > > >>>> Sorry I am a complete noob on this and Google is definitely 
> > > > > > >>>> making
> > > > > it
> > > > > > >>>> difficult to understand.  I do not want to get into any issues 
> > > > > > >>>> with
> > > > > > >>>> taxes.  Any tax genius out there that has any ideas on what to 
> > > > > > >>>> do?
>
> > > > > > >>> --
>
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