Interesting information, cheers! On Mon, Oct 8, 2012 at 9:23 AM, Rudolf Hornig <rudolf.hor...@gmail.com> wrote: > Hi, > > I went through this thing already (how to do the taxing (hopefully) > correctly). I live in Hungary (inside EU). Whenever I sell an app, that is a > licensing contract between ME and the BUYER (google has nothing to do with > it. They are just a technical intermediate). > > You sell the app at the full price (what you set on the console). Now as I'm > inside EU, *if* the consumer is also inside the EU that purchase is subject > to VAT which should be paid by ME (at the local (hungarian) tax rate which > is 27% in Hungary (shit!)). > > i.e. I had to set full flat rate tax for all EU countries (this is pretty > easy to set up in the merchant console). > > Now, at the time of the purchase I owe 30% to google which could be seen as > an expense (deductible from the profits). > > generally if I set the net price to 1EUR and someone buys it in the EU, she > will pay 1.27 EUR, Google will withhold the 30% of the NET price (i.e. > 30cents) so you will receive 1.27-0.30 = 0.94 EUR > > Now from this 0.97 EUR, you must pay the 0.27EUR to the local TAX authority, > so at the the end you will have 0.7EUR net profit (subject to further taxes) > > (there are some further complications as in theory you have to pay the VAT > *locally* for the service (i.e. the software distribution) Google has > provided to you. i.e. you should have additionally pay 0.30EUR*27%, but this > amount is also TAX deductible at the same time, so you don't have to pay it > actually... This is just an accounting issue). Please note that this is > based on LOCAL Hungarian Tax laws, but laws in the EU must be reasonably > compatible. > > > Generally, you should see Google as a big vending machine, dispensing your > products. You are selling products to the customers and the vending machine > provider charges you 30% of your NET income... > > The location of your bank account does not matter at all... > > (As in Hungary we do not have EUR but we have HUF as the official currency, > all taxes must be calculated and paid in HUF. This further complicates the > issue, as the TAX must be calculated immediatley on the day of purchase > using the national banks currency exchange. Obviously this is different from > the rates used by google, so you have an additional risk here. Welcome to > the real world...) > > Rudolf > > > On Friday, October 5, 2012 4:26:05 PM UTC+2, latimerius wrote: >> >> On Fri, Oct 5, 2012 at 2:37 AM, Zsolt Vasvari <zvas...@gmail.com> wrote: >> > In all countries, with the notable exception of the US, you pay taxes >> > where >> > you earn them. If you are a US national/PR, the US government expect >> > you >> > pay US taxes no matter where you earned the money. The first $X is a >> > foreign tax credit which means you don't pay double taxes on the first >> > $X >> > you earn. X is around $95,000 these days. Anyway, this is the general >> > idea, and I am not a tax accountant, so don't take this as an advice. >> > With >> > any questions, you need to consult a professional tax accountant. >> >> No worries, fortunately I don't have to deal with this problem >> anymore. I had to though when we first got involved with Android, and >> our plan B was exactly what the OP describes. We figured it should >> work from Google point of view (as Rudolf confirms) however we saw no >> good way to figure out the taxes. >> >> Where exactly you earn money can be a tricky question for someone >> sitting in country A, using a sort of a proxy entity in country B to >> sell stuff to someone else in country C, with the actual transaction >> happening on Google servers in country D (most likely the U.S.). >> >> I wouldn't be surprised at all if the logic (with respect to OP's >> situation) was "Google deals with a Czech entity who has a Czech >> street address and a Czech bank account, ergo someone's making profit >> in CZ and has to pay Czech taxes". Or something like that. Now, if >> he also lives there he has to pay Czech taxes anyway. The interesting >> case would be if he lives in Serbia, as that would indicate Serbia >> might be the place of his tax residence (depending on local laws) >> which would mean he'd have to pay Serbian taxes as well. >> >> So there seems to be a plausible argument for paying Czech taxes, and >> a plausible argument for paying Serbian taxes. >> >> Now I won't be paying any money to anyone to figure this out as I >> don't *have* to know currently, I just thought I'd ask in case >> somebody here has some experience or knowledge about this. > > -- > You received this message because you are subscribed to the Google > Groups "Android Developers" group. > To post to this group, send email to android-developers@googlegroups.com > To unsubscribe from this group, send email to > android-developers+unsubscr...@googlegroups.com > For more options, visit this group at > http://groups.google.com/group/android-developers?hl=en
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