I'm _amazed_ that Google hasn't fixed this. Apple didn't have the problem at all, and I don't understand why it is taking Google so long.
I imagine once they had it set up for music, video, etc, adding in support for paid apps was relatively simple.
You sure about that? Just because Apple took care of it doesn't mean it didn't take a lot of work.
Consider: I don't think advertising is subject to sales tax. Here's New York State on the subject:
http://nystax.custhelp.com/cgi-bin/nystax.cfg/php/enduser/st...
When you go into a product business you may have a different set of legal issues to consider. It's also B2C rather than B2B, which changes the sort of customer service you need and (I'm guessing) dramatically increases your vulnerability to things like chargebacks and stolen credit cards.
There's internet! Money bounces back and forth over the internet already. People have credit cards. What is it that Google has to do to let me sell and buy Android apps in one of the unlisted European countries that I live in?
It's all more complex than that... but yeah, doing business in other places usually results in tax weirdness.
As a developer you need to be in Austria, France, Germany, Italy, Japan, Netherlands, Spain, United Kingdom or United States to set up a merchant account.
I had an email conversion with Tim Bray about this...
He said: "I hear you. We're working on lots more countries. It's an amazing amount of work to do each one. -Tim"
But did not indicate any timeline :(