Apple has sent an email to iOS developers informing them of upcoming changes to the way taxes are handled on European App Store purchases. Rather than use the same VAT rate across the entire European Union, Apple will now calculate the charges based on the customer’s home country.
This could lead to a rise in app prices in some countries where value-added taxes are higher than users are currently being charged. Apple also notes in the email that developer’s cuts of app profits will be calculated after the VAT has been deducted from the purchase price.
The changes will go into effect on January 1st. Apple’s tax practices recently came under fire from government authorities.
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This change is required by EU. All company must bill VAT by country of customer, not by country of company. Via: http://ec.europa.eu/taxation_customs/taxation/vat/traders/e-commerce/index_en.htm
What was the VAT rate they used until know? I know about this new restrictions from European Union for a while but I would like to know if the VAT before was higher or lower than in my country. If lower, then oh, if higher, then yay :D
* until now, obviously
Until now apps had Irish 22% VAT on them.
vat here is 23%
Wow that is very high. I don’t like seeing the 8.5% that they charge in NY.
Now all they need to do is realise that FREE TRADE in the EU is exactly that FREE TRADE…!!! I love my Apple products but some things jug the hell out of me…! Like this wonderful new feature they introduced with IOS8 Family Sharing… It is AWESOME but for so many people it simply does not work… My account is UK as that is where i used to live, but now my family live elsewhere in Europe, which means we have 2 different country accounts, and the kids have to either connect to the computer to download my music and apps as we simply cannot get Family sharing to work…!!!
This violates Free Trade laws in the EU, and needs to be corrected… Would the USA be happy if it was the same for different states having the issue, which is exactly the same for us in the EU…!