Does Facebook collect the tax for Credits Transactions?

Question

Since Facebook has all the location information on the buyer and seller, and the developers may not have the user's location information, does Facebook charge any required tax for a Facebook Credit's transaction, and then take that amount when the app owner redeems the credits?

Answer 1

Well, the short answer is No. They don't handle any tax considerations for you. Paying taxes due on any payments processed through Facebook (including VAT where applicable) is on you.

I'd add, though, that you are also operating under a misunderstanding of how Credits work for you, the developer. You don't have to "redeem" Credits - once they're spent in your app, Facebook will (er, perhaps I should hedge and say should) pay you directly.