OT(ish): Selling software downloads - sales tax?

[Camm]

All ,

Just to be clear the EU VAT change Jan 2016 applies to even 1 download if sold to any EU member state customer at their current VAT rate.
It applies to any digital product that is downloaded with no physical fulfilment , its defined by "minimal user input to obtain download" so even if you sale licence keys the new rules apply.

Simple flowchart :-
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/415931/VAT_MOSS_Flow_chart_FSB_edit_V1_0.pdf

Camm


-----Original Message-----
From: use-livecode [mailto:use-livecode-bounces at lists.runrev.com] On Behalf Of Warren Samples
Sent: 17 March 2016 23:25
To: How to use LiveCode
Subject: Re: OT(ish): Selling software downloads - sales tax?

On 03/17/2016 01:06 PM, Graham Samuel wrote:
> I have been discussing the sale of a desktop product (developed with 
> LC, obviously) with a colleague. We’re thinking of direct sales...He’s 
> in the US
>
> ..sell a low volume of product purely as a download with no physical fulfilment...I am not sure about the US.

There is no sales tax charged for any online sales in the US except for sales to customers located within a state where the vendor has a physical office or point of sale. Your stateside partner probably knows this already. As far as software with no physical delivery goes, it could be considered several different ways which will vary from state to state but again you are only concerned with how the state where he is qualifies it. Ask your partner to contact the revenue department of the state in which he resides and ask them how to proceed. That would be the only state where you have any possible obligation and even then, depending on how your partnership/company is structured and how they consider this kind of product, you might not have any at all.


https://www.sba.gov/content/collecting-sales-tax-over-internet

http://biztaxlaw.about.com/od/businesstaxes/f/onlinesalestax.htm

http://www.inc.com/articles/2003/10/salestax.html

Good luck!

Warren

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