From: Marcus Andree S. Magalhaes (marcus.magalhaes_at_vlinfo.com.br)
Date: Mon Mar 15 2004 - 11:02:20 PST
Well, If you're going to sell software online, it shouldn't apply any
taxes. Legally, Internet is all about "data transfers" and, as such,
it is not taxed in most (or even all) countries.
If you're going to sell a physical media and deliver it to your customer
address, it may be taxed. Legally, AFAIK, most of the price for a software
package should reside in the "intellectual property" portion of it. The
only taxable item would be the "media" (and this sould cost about $1
or less). That's what happens to books: when you buy a book, the vast
majority of the money you pay for it goes to I.P., so it isn't taxed on
arrival.
But some countries decided to modify or not comply with the law and are
taxing the full price of software. This is, generally speaking, paid by
your customer once s/he receives the package. You can arrange with, say
Fedex or DHL, to prepay any VAT fees, so your customer receives your
software with no additional worries.
Some countries also have a threshold value. Anything costing lower would
*not* be taxed and delivered directly to the destinatary.
Be advised that customs laws and taxes vary from country to country. It's
a bit difficult to be 100% certain on this, but, generally speaking, that's
how things work.
As a last advise, if I were you, I'd stick with the "online selling" method
and provide a simpler way to your customer download the software again, just
in case.
>
>>As far as I can tell, I don't have to worry about VAT (anyone
>> experienced in international software sales have insight on this?).
>
> John, from my experience (mailorder music shops) there will be no VAT to
> cash in on your side.
> The buyer will have to declare customs in her country, though, if
> applicable.
>
>
> Maybe there is a way to facilitate this for buyers, as in you cash in
> the customs charges and declare this on their behalf, so the buyer is
> all blissfully care-free. I've heard people reporting this when buying
> from some US companies that they didn't have any hustle with customs,
> all handled by the manufacturer, so this should be possible. But then
> what do I know - I'm just
>
> DJ Vollkasko.
>
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