What I think is important for us to properly establish is weather in a country where there is a vat registration threshold weather smaller developers who are under the vat regestration threshold can opt to a) not charge vat or b) claim back from Google or the applicable authority the vat that has been charged unlawfully/without need. For example in the uk if you turn over less than 70 odd thousand you don't need to register or charge vat yet here you as the developer would loose out on 20% which is a massive amount to loose. ---------------------- Matt ---------------------- Sent from android mailer
ott <[email protected]> wrote: >> On 5/12/2012 3:25 AM, Pent wrote: >> >> I'm beginning to think that what they're REALLY saying is that before >> they were either NOT paying the tax they should, or they were doing a >> US-style tax-is-added-afterward approach. So if you were selling for $1 >> and there was a 10% VAT, they would be actually charging $1.10, even >> though the price was $1. (Using dollars for convenience, since my >> keyboard doesn't have Euro or Pound or other symbols.) >> >> This is just a guess, though, since the communication wasn't clear on >> what they were doing before. >> >> But NOW, with "inclusive" pricing, they'd be charging $1, but the actual >> "sales price" would be something like $0.91, with the 10% (0.091) VAT >> being included in the "list price." So they needed to tell us about it >> because, in countries where VAT is added to software, we'll be getting >> less (NET) for a sale at a particular price point. >> >> And I seem to recall that some countries have a VAT that goes into the >> 30% range for some items; no idea whether this includes software, but if >> there's a 30% tax in a country, that means you'd be making about 23% >> less at the same asking price (no, it's not 30% less; trust me, it works >> out this way). So if you care about the exact amount you're getting, >> you'll need to raise the price you're asking. >> >> THAT much of the email was clear to me; in any country that charges VAT >> for software downloads, we'll be getting less money unless we change the >> prices we're asking. What is STILL not clear is whether those countries >> charge VAT for software sold internationally -- e.g., if we're US >> sellers will this affect UK sales? > >I don't think Google was ever charging the customer for sales tax or >VAT unless you specified the % of tax to collect under your Google >Checkout tax settings. It was always up to the dev to determine >whether any particular sale for a certain US state or foreign country >needed to be charged sales tax. Then, the tax would be paid to the >dev who in turn had the responsibility of submitting the collected tax >to the proper authorities. The difference now, starting May 21st, is >that the tax will be included in the "list price," as you say. But if >you have your tax settings set to collect 0% tax, then you won't have >to change your list price because Google won't be collecting any tax >for you anyway. > >-- >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]. >For more options, visit this group at >http://groups.google.com/group/android-discuss?hl=en. > -- 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]. For more options, visit this group at http://groups.google.com/group/android-discuss?hl=en.
