**Really sorry if I shouldn't have asked a question here, but wherever I try to post it, it pops up with a message saying it's not a Q&A forum, but I can't see where I should put it, plus the answer would be really useful to others I should imagine**
Hi
Just over a week ago I released my first Android app, I made an ad supported free version, and a paid version with no ads in it.
Since having a look around the settings in my Google Merchant account, I discovered a section about setting tax rates for my apps.
I have been through the hassle of getting the rates for each country I want my apps sold in.
I am wondering whether that was the correct thing to do, I have seen things on various forums saying I don't need to collect VAT unless I earn over £81,000 (I'm in the UK btw, and I'd be quite happy to make £100), others have said only put in the tax rate for the country which I'm selling from, others have said input for every country selling to.
I'm confused as to which I should have done.
Also, I saw that it said that Google will take the VAT off the gross price, then take their 30% off the net price, they will then pass on the gross price minus their cut, e.g.:
if app is £1
UK VAT is 20% so £1 minus 20% is £0.80
Google will take 30% of the £0.80, so this would be £0.24
They will then pass on the gross price minus their cut, so pass on £0.76
The way I read that I have £0.20 which is VAT sitting in my bank account, am I supposed to pay this in somehow, even if I'm not VAT registered, do I have to do that for every country around the world that I sell my apps to? And can I pay it all to the UK government or do I have to pay each relevant government their cut?
It's only a 69p app, I'm an unknown, I don't expect it to make huge amounts of money, I just wanted to learn and see how far I could get, might even look good on my CV, but the "paperwork" side of getting this thing up and running has been a headache.
For a multi billion dollar company, I think Google have done a really bad job of trying to encourage people that aren't part of large companies to develop apps, Apple deal with it all for you!
Hi
Just over a week ago I released my first Android app, I made an ad supported free version, and a paid version with no ads in it.
Since having a look around the settings in my Google Merchant account, I discovered a section about setting tax rates for my apps.
I have been through the hassle of getting the rates for each country I want my apps sold in.
I am wondering whether that was the correct thing to do, I have seen things on various forums saying I don't need to collect VAT unless I earn over £81,000 (I'm in the UK btw, and I'd be quite happy to make £100), others have said only put in the tax rate for the country which I'm selling from, others have said input for every country selling to.
I'm confused as to which I should have done.
Also, I saw that it said that Google will take the VAT off the gross price, then take their 30% off the net price, they will then pass on the gross price minus their cut, e.g.:
if app is £1
UK VAT is 20% so £1 minus 20% is £0.80
Google will take 30% of the £0.80, so this would be £0.24
They will then pass on the gross price minus their cut, so pass on £0.76
The way I read that I have £0.20 which is VAT sitting in my bank account, am I supposed to pay this in somehow, even if I'm not VAT registered, do I have to do that for every country around the world that I sell my apps to? And can I pay it all to the UK government or do I have to pay each relevant government their cut?
It's only a 69p app, I'm an unknown, I don't expect it to make huge amounts of money, I just wanted to learn and see how far I could get, might even look good on my CV, but the "paperwork" side of getting this thing up and running has been a headache.
For a multi billion dollar company, I think Google have done a really bad job of trying to encourage people that aren't part of large companies to develop apps, Apple deal with it all for you!
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