I get a feeling the Market team was not allowed to look at Handago or 
other esellers or the Market would have been set up differently.  

- Brian

RichardC 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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>>> As a customer (I have not yet published anything on the Market) this indeed
>>> is confusing :
>>> For some apps (ex PicSay Pro), displayed price (in €, ok for me since I am
>>> in france) in applications list (and app detail)  does not include VAT, but
>>> then in Market's Google Checkout page (buying confirmation), the VAT is
>>> added. (there are both base price and additional VAT amount shown).
>>> -> this means that in app list you can't really compare since shown price is
>>> "VAT excluded", so real price may differ depending on the app.
>>> And I presume that depending of how the seller published its app
>>> (by specifying taxes or not ?), for some it is "VAT included" (??).
>>> Anyway for some apps I will discover at buy time only that I have to pay
>>> more, and for others, no....
>>>       
>>> Another similar problem (but not directly due to these taxes), I am also
>>> charged additional taxes on my VISA Card when buying apps not in € (1€ tax
>>> for each app, + some percentage of the price !) . Big problem is that at buy
>>> time there is not any indication this may happen. I had the surprise the
>>> next month on my Bank bill !
>>> Oh.... and with the same VISA card, using Paypal I do not have this problem
>>> since Paypal does the currency conversion itself, and charges my card in € .
>>>       
>>> Result is I do not buy anymore apps that are not charged in €, and in
>>> general I am more reluctant for buying anything from the Market....
>>>       
>
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