What taxes are charges/payable on software sales over the web (where the product is downloaded)? I am under the impression that, for example if someone in the US buys a game by downloading it from me, then (me being in the UK) there are no tax issues. Is this correct? And if someone in the US sells to someone else in the US via the web, what are the sales tax issues? Any thoughts appreictaed. ;-) http://www.positech.co.uk

As far as I know it is like the following:
US customer buys a product from your website. You are a UK citizen. Then you have to pay UK taxes as if your customer would be a UK citizen. It is like the US customer comes to the UK and buys something there in a real shop.
However if you SHIP the product to him you might need to pay duty. Hint: Sell it by electronic download.

In short time I will sell a product by ecommerce like that. I will need to pay all taxes regarding my country for the product, but I will not care what kind of taxes they have in Iraq for example.

If you ask me, just sell it and if you have made some thousand dollars go and ask a tax adviser.