On 05/11/2012 02:24 PM, Tim Mensch wrote:
On 5/11/2012 3:16 PM, Brian Conrad wrote:
Should have been that way from the beginning though many of us live
in states that do not charge sales tax on software.
What was the actual repercussion of the old system? Did it not affect
those of us in the US because there's no national sales tax?
I had plenty of international sales to countries with VAT, and I
didn't ever need to "do" anything special about it. Or was I missing
something?
Or was it just that the prices shown weren't the prices people
actually paid, which isn't how things work in most of the world? I
know people coming to the US get annoyed when the price listed doesn't
match the price+tax.
Tim
There were a lot of questions about VAT and sales taxes a couple years
back. I sell software through Digital River using SWREG including
Android apps. They always have taken care of the taxes. Not all sales
are taxable. The problem is that countries probably figure they might
be losing some revenue but cottage developers are hard to go after and
the revenue might actually cost them more to process than what they
might take in. So it would get ignored. Better to have the "store" take
care of it where it is cumulative and makes sense.
Back in the 1980s when I started selling software in Washington state I
noticed a funny reaction when I set things up with the state office for
that. Back then it was "hard" sales because you sent out discs and
sales to Washington residents were taxable. I mentioned the funny
reaction to some local business people who explained that "tacitly" the
state probably would prefer you not set up a business and collect taxes
until revenues were somewhat substantial as it cost more to process than
the taxes collected. A year or two later the state changed the rules so
that if you sold less than $1000 of stuff a year you only reported and
paid once a year than quarterly so that they would not lose so much
money in the process.
-Brian
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