Hey all, I'm getting my site up, slowly but surely.... I have a question.... Sorry if it doesn't go here.... If the products I sell are downloadable.... Should I charge taxes?
Hmm i if you are doing some soft of extra affiliation, paying people per click, or per sale, and are paying out more then $600, then you need to do all the tax related stuff.. Tax id.. W-9 form ect. so i would believe you should Some people just take tax as a way to make an extra $ .. Well thats my 2 cents but if its privatly owned data, you do not need to charge taxes.. Also it matters where the person lives. Like what state..
To add, if you sold to EU Citizens, you will need to collect VAT and submit it to the respective EU authorities. The VAT would vary from country to country. If you use a service like Plimus.com, Shareit.com or 2Checkout.com , they will handle all the tax nitty gitty on your behalf and free you from all that.
If the person doing the downloading is living in the USA and lives in the same state as you and your state requires your self-employment/business to pay sales tax, then yes you do. Best I know, I wouldn't mess with it and just up the prices to cover the costs. Then set a certain % aside to pay the tax's on it.
This is a common problem across the web and although i dont know the answer to it, I do get very frustrated when I have to pay US Tax to purchase online services, even when I live in the UK