
…I here by declare that I have not developed, sold or distributed applications or services over the Android Market and Google checkout payment system. Please do not begin an investigation into my activities, as I am mealy a hard working bunny who only manages to file his German tax explanation forms on a semi-annual basis. Please do not crush my dreams under weight of bureaucracy and threat of criminal prosecution.
Mark
[RANT]
It turns out that selling applications over the Android market seems to be a sure fire way of getting myself investigated by the tax man (all of them, not just the German one apparently).
Developers are required to set the sales-tax rate for the local where the customer is buying. That means customising the correct rate for every state in the US (and individual city’s apparently), European country, province of Zanzibar, etc. I do not happen to know the tax rate in California, and I expect that nobody would inform me if it were to change the day after I entered it manually into the Market web page. Developers are not international tax experts, and Google have abdicated their responsibility by charging a blanket ~30% “carrier tax” without taking responsibility for Tax processing itself.
I can hear the sound of iPhone developers (who have this taken care of for them) laughing at us right now.
[/RANT]
P.S. Here’s an idea, how about Google do a *Tax* session at their Google I/O conference?
Some relevant links:
[Question: Legally, is the developer selling the app or is Android Market selling it to end user?]
[Campaign: Android Developers International & Tax Consultation]
[Question: Do I need company to sell applications?]
[MARKET QUESTION: Selling applications on the Google Market]
[MARKET QUESTION: Selling applications on the Google Market]