Please do not post the same thing multiple times. The board software automatically flags certain posts as needing moderator attention. This happens the most often for new users. I'm pretty sure this is made clear at the time you attempt to post. Posting the same thing over and over again just makes that many more posts the moderators have to weed through later. This makes us sad. Don't make us sad. If your post/thread doesn't appear, just wait a while. Don't post it again. If it hasn't shown up by the next day, then you can try again. I normally go through posts in the mornings, and try to check a few times throughout the day, but I'm not here 24/7. There will typically be a significant delay before posts are approved. Just be patient.
I have a question on paying taxes. I live and work in Austria (freelance teacher) and pay my taxes here. I have developed an app and I have a set up in business registered as a sole proprietor here. I already handle my own tax returns. I know that I have to declare every sale and pay income tax on each one. However, how does it work with sales tax (aka VAT)? If you buy a book in a store, you pay x% of sales tax on that purchase, right? The shop keeps a record of all it's expenses and all it's income, then does the maths and either pays the sales tax or claims it back. This I understand.
So does Apple do the same? On the 99USD cent tier does that price include sales tax? And when Apple remits the 70% to me do I have to bill them and include the 20% Austrian sales tax on that bill?
I know that here in Austria if my turnover is less than 30,000EUR I do not have to register for sales tax. But that also means I can't claim any back, and given that the app cost 4000EUR plus 20% sales tax to develop, obviously I want to claim that 20% back. So I will register.
Also, how does it work for sales outside of Austria? Does Apple just take care of all this stuff or should I do something?
Here is the deal: you are NOT the seller. You are manufacturer.
Apple iTunes is the store (seller) which takes care of taxes/currency conversions etc. You don't hold even transaction records (like in GooglePlay where you are actually seller and really don't know why google dares to charge same 30% cut when they provide significantly less service).
When you set up price tier - it's price before taxes. You will get 70% of that. Taxes will be collected by seller (Apple) and distributed to authorities in which jurisdiction particular sale occurred.
Thanks a lot for your reply. So the 0.99USD price is the price before tax? Then how much does the app actually cost for an end user who purchases it from the US Apple Store? And in that case, how is it that many apps cost exactly 0.99USD? If Apple has to add the tax, and the lowest price tier is 0.99USD that doesn't make sense :-(
Anyway, maybe there is no need to go there, all I really care about is my 70% :-) So another (related) question: do I have to invoice Apple for what they pay me? If so, do I add sales tax? If not, how do I justify that income to the authorities here?
Ah, I got it! The sales tax comes out of Apple's 30%! OK, so that's actually pretty cool.
Nope, sales tax they charge automatically on top of full purchase price.
E.g. you specify full price "pre-tax", when app/IAP is purchased they charge price + sales tax.
Moreover, as actual seller is Apple the sales tax is charged based on that fact: e.g. they sales tax in geographies where they have to pay sales tax on services.
For example:
Item purchased in California. Apple has presence there, but no sales tax on services. No tax charged.
Item purchased in Arizona, where Apple has physical presence and there is sales tax on services. Apple charges $0.99 + (don't remember how much is tax there) but lets say 6% tax. User charged $1.05, where $0.06 is paid by Apple to Arizona and $0.99 is split 70/30 between you and Apple
(continue from computer) VAT: it's little bit hard for me to understand whole thing (as it's different from US sales tax), but having that actual seller is Apple - they have to pay it based on the rules.
You sold your app to Apple, so it's basically export for Austria and there should be no VAT. If Apple sells the app back in Austria - it's re-import and Apple is the one who is responsible for paying VAT in Austria (if they fall under rules where they have to pay VAT in Austria)
senroeash
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Apple iTunes is the store (seller) which takes care of taxes/currency conversions etc. You don't hold even transaction records (like in GooglePlay where you are actually seller and really don't know why google dares to charge same 30% cut when they provide significantly less service).
When you set up price tier - it's price before taxes. You will get 70% of that. Taxes will be collected by seller (Apple) and distributed to authorities in which jurisdiction particular sale occurred.
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0 • Off Topic Insightful Disagree Dislike Like AwesomeAnyway, maybe there is no need to go there, all I really care about is my 70% :-)
So another (related) question: do I have to invoice Apple for what they pay me? If so, do I add sales tax? If not, how do I justify that income to the authorities here?
Cheers.
Robert
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0 • Off Topic Insightful Disagree Dislike Like Awesome- Spam
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0 • Off Topic Insightful Disagree Dislike Like AwesomeE.g. you specify full price "pre-tax", when app/IAP is purchased they charge price + sales tax.
Moreover, as actual seller is Apple the sales tax is charged based on that fact: e.g. they sales tax in geographies where they have to pay sales tax on services.
For example:
Item purchased in California. Apple has presence there, but no sales tax on services. No tax charged.
Item purchased in Arizona, where Apple has physical presence and there is sales tax on services. Apple charges $0.99 + (don't remember how much is tax there) but lets say 6% tax. User charged $1.05, where $0.06 is paid by Apple to Arizona and $0.99 is split 70/30 between you and Apple
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0 • Off Topic Insightful Disagree Dislike Like AwesomeVAT: it's little bit hard for me to understand whole thing (as it's different from US sales tax), but having that actual seller is Apple - they have to pay it based on the rules.
You sold your app to Apple, so it's basically export for Austria and there should be no VAT. If Apple sells the app back in Austria - it's re-import and Apple is the one who is responsible for paying VAT in Austria (if they fall under rules where they have to pay VAT in Austria)
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0 • Off Topic Insightful Disagree Dislike Like Awesome