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DarkAndStormyMonday2016-09-23 03:55:13
Freelance
DarkAndStormyMonday, 2016-09-23 03:55:13

Selling mobile applications: what to do with the tax in the country of the buyer?

It would seem that with the taxation of a mobile developer working as an individual entrepreneur on the simplified tax system (Income), everything has long been chewed up: it is enough to pay 6% of the total amount of income (including the share of the app store) and 18% of the share of the app store, taking on the role of his tax agent.
However, when selling a mobile application in the EU, USA, Canada and other countries (about 40 countries in total), application stores also automatically pay tax in the country of purchase (approximately 5-25% of the program cost for the end user), and the rest is divided in the ratio of 30 /70 with developer. And when selling in other regions (about 160 states), app stores do not pay taxes at all, placing this responsibility entirely on the developer.
Hence the questions:
1. It turns out that it is not realistic to sell applications in the remaining 160 countries to a single developer legally? After all, the bureaucratic burden becomes unbearable, and the final commission charged by the bank for many transfers related to tax deductions to various states nullifies all profits. How do you solve this problem: do you only make free applications with ads or just "forget" to pay taxes in these 160 countries? It is interesting to learn how this issue is solved by large domestic and foreign development companies.
2. Does an individual entrepreneur on the simplified tax system (Income) need to pay 6% of the tax that the store pays on its own in 40 countries? From the point of view of our law, the taxable income of 6% is the entire amount that the user paid at the time of purchase, and taxes in other countries are our expenses and cannot be deducted from the tax base. Or not? And if so, how then is it correct to maintain KUDIR: to reflect in it separately the income for each country, since the tax rates in them are different?
3. Logically, would it not turn out that freelancers who provide services to clients from abroad are also required to pay taxes in their own countries?

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3 answer(s)
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Puma Thailand, 2016-09-23
@opium

in the countries of customers you do not need to pay taxes, only at home.

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Dimonchik, 2016-09-24
@dimonchik2013

about the “pay in every country” bullshit, you are not so wrong in some ways, see VAT for non-European companies,
but for your small bell tower it’s enough to pay tax in the Russian Federation, having correctly dealt with the tax base
, now for you this is the amount that went into your bank before bank charges

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jewubinin, 2016-10-08
@jewubinin

Do you know what double taxation is?
And do you know the agreements between countries so that there is no such thing?
It is enough to pay in your own country.

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