Apple has sent out an email to iTunes Connect developers announcing a change in how taxes are calculated for App Store purchases in the European Union. Starting January 1, 2015, Apple will charge customers the value-added tax, or VAT, rate based on the country in which they reside rather than calculating a flat VAT rate for all countries in the European Union.
According to the email, Apple says:
The effect for consumers is that prices for apps could potentially increase if customers reside in an E.U. country with a high tax rate.
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VAT or any kind of tax for apps is BS.. Tax is BS on it's own.. Why they need to tax me? Am I getting better app? This world is really f*cked up.. Especially the relationship between EU and US..
Federal Tax, State Tax, County Tax. City Tax, Income Tax, Sales Tax, Valued Added Tax. I know I haven't listed everything but we get the idea. I calculate 60% of our earnings goes to taxes. Sent from the iMore App
60? Lol. Maybe if you are a smoker and lotto player. Sent from the iMore App
Between earning money and spending it, I pay 60% taxes, just for consumer goods: I live in the Netherlands and build websites as a contractor. If I send you an invoice of € 100, I have to build in € 20 tax (21% actually). I get to keep € 80, of which I have to pay 25% to 55% income taxes, depending on how much money I make that year. So let's say I don't earn > 55K/year and I get to keep € 50. But digital money on the bank is useless, so I buy myself a € 50 winter jacket for it. Again, 21% tax so a € 10 goes to taxes. Effectively, of my € 100 invoice payment, € 60 goes to taxes. Not even paid my business expenses, federal taxes etc. Didn't even smoke or play lotto ;)
It's true: from the next 1st january the vat will be applied on the country of customer. I wish to underline that until the next 31st dec, the vat rate is not a standard one, Until that date apple still continue to app,y the vat rate where they are vat reg in europe. As a consequence is not correct apple is applying a lower rate... more over actually apple is in ireland where vat rate is 23%! Only in scandinavian is greater! ...it can be an excuse for growth the price...
At the end...no pther taxes change.
I am an expertise vat consultan. Be sure!
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