US Developer selling internationally: Tax Information?
My app is currently on the Google Play store but since they place the burden of paying taxes on the developer, I'm thinking about selling my app on the Amazon App Store (mainly for international markets). I looked through the FAQ (
https://developer.amazon.com/help/faq.html#InternationalOverview) but it doesn't really specify if Amazon takes care of taxes in the EU and other international markets. This is what their answer says: [i]List Prices are inclusive of any VAT or similar taxes included in the purchase price displayed to end users, but those taxes are excluded from the List Price for Royalty calculation purposes. For example, if the List Price for your App for an Amazon Marketplace is 1.15 Euro and we display prices to an end user of that Amazon Marketplace inclusive of 15% VAT, the List Price for Royalty calculation purposes for a sale to that end user is 1.00 Euro.[/i] I get that if my app is priced at $1.15, I'll only be paid $1.00, but does this mean that Amazon will send the other $0.15 to the appropriate tax authorities in international markets? I know I'm responsible for paying taxes here in the US, but what about other countries? Does Amazon take care of international taxes (VAT etc) just like Apple's app store or do I need to do anything else to get the taxes passed on?
U.S. tax law requires us to report royalty payments made to entities and persons resident outside of the United States and to withhold and remit taxes on such royalty payments to the Internal Revenue Service (IRS). Although you may also be required to report and pay taxes to your own government, we are not involved in this process. You can find more information on this at the following link:
https://developer.amazon.com/help/faq.html#SalesPaymentTax Check for the question "Will you withhold any taxes from payments made to international developers for U.S. sales?" at this link and you will get detailed information on Tax for international developers. Hope this info helps. Thank You.