Also I found this http://www.google.com/support/androidmarket/bin/answer.py?hl=en&answer=138000
I dont know where the extra money goes, I'm assume it just goes to YOU, and you use it to pay the taxes at the end of the year, basically just passing it on to the customer. -niko On Nov 11, 10:36 am, niko20 <[email protected]> wrote: > Also, I believe I may know what is going on here. > > Apple probably outrightly charges sales tax because all purchases go > through them, they are the actual "store" and they get a cut. > > Google doesn't do sales taxes, because they aren't taking a cut. > Therefore they don't set the sales tax. The carriers are the ones that > get the 30%, and they would have to pay sales tax in the state that > their business is in (their location), so they most likely take that > tax out of the 30%. I believe they even indicate that the 30% helps > cover taxes, fees, and whatnot. > > As a seller you pay taxes for the state you live in, but you would do > that anyway at the end of the "year". > > So I don't think we have anything to worry about. The carriers are the > ones that are most likely handling the tax issues for their location. > > If you do a google search you will find pretty clearly states current > law about internet state taxes. According to what I found you only > have to pay tax if the business is in the same state as you (has an > actual physical location in the same state as you). Since as a seller > you will already pay taxes to the state at the end of the year, then > that would cover it (although you are paying for it, not the buyer, > you would have to increase your price to cover the tax). > > As far as international, who knows.. > > -niko > > On Nov 11, 10:25 am, niko20 <[email protected]> wrote: > > > > > 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 > > ... > > read more » -- 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]. 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