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Thread: Apple to Implement Country-Specific App Taxes in Europe Starting January 1, 2015

  1. #1
    What's Jailbreak? Akshay Masand's Avatar
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    Default Apple to Implement Country-Specific App Taxes in Europe Starting January 1, 2015


    In a recent email sent out to iTunes Connect members, Apple reminded developers o an upcoming value-added tax (VAT) rate policy change which will see customers paying fees based on their country of residence rather than other EU locales with lower taxes. The VAT rates for apps are set to change in all European Union territories starting January 1, 2015 with the new policy potentially upping prices for customers that live in high tax countries such as the UK. As of right now, App Store customers are currently charged a flat VAT across the EU.

    This move comes after British Chancellor of the Exchequer and Second Lord of the Treasury George Osborne announced new laws in March targeting tax loopholes that allowed Apple to sell app downloads via low-VAT countries. An example of this would be UK App Store customers bypassing a 20% VAT through Apple’s routing of purchase through countries such as Luxembourg which has a 3% tax rate instead. A UK budget document released at the time mentioned the following regarding the matter:

    As announced at budget 2013, the government will legislate to change the rules for the taxation of intra-EU business to consumer supplies of telecommunications, broadcasting and e-services. From 1 January 2015 these services will be taxed in the member state in which the consumer is located, ensuring these are taxed fairly and helping to protect revenue.
    As of right now, it isn’t clear if Apple intends to apply the new tax rule to all iTunes purchases including music, movies and e-books though UK budget laws set for enactment cover all digital downloads. Apple’s note goes on to point out that although the App Store prices will change to reflect appropriate VAT rates, developer earnings are set to remain the same as they are calculated without tax.

    Source: AppleInsider

    Twitter: @AkshayMasand

  2. #2
    Nancy Pelosi (and the Left) was pushing for VAT in America. It's basically just an arbitrary tax just to increase the size and scope of government.

    We have billions of dollars in waste already, and instead of cutting down on government programs that don't work, their answer is to simply to bleed people more dry. The people that write these laws and pass them are rich - they can afford to arbitrarily raise taxes on goods - they're not going hungry any time soon. It's the people that suffer.

    VAT is the direct result of government corruption. (This is not Apple's fault - this is the EU's fault)

  3. #3
    Quote Originally Posted by Jahooba View Post
    Nancy Pelosi (and the Left) was pushing for VAT in America. It's basically just an arbitrary tax just to increase the size and scope of government.

    We have billions of dollars in waste already, and instead of cutting down on government programs that don't work, their answer is to simply to bleed people more dry. The people that write these laws and pass them are rich - they can afford to arbitrarily raise taxes on goods - they're not going hungry any time soon. It's the people that suffer.

    VAT is the direct result of government corruption. (This is not Apple's fault - this is the EU's fault)
    Is this EU or the UK specifically? I know they have 20% VAT on everything. I do completely agree with you though.

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