Apple App Sales and VAT (in UK)

Discussion in 'Indie Business' started by Jamie W, Mar 10, 2012.

  1. Jamie W

    Original Member Indie Author

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    What's the situation regarding VAT on app sales?

    Is VAT included in the 40% cut that Apple take from European app sales?

    I'm considering VAR registration; so need to know if VAT has been applied to money I recieve from Apple. Also, will I a VAT reciept/invoice from Apple, along with any payment they make in to my account; for purpose of my VAT accounts etc.

    Any thoughts or advice?

    Many thanks,
    Jamie.
     
  2. Grey Alien

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  3. Applewood

    Moderator Original Member Indie Author

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    Still not gone to that accountant then to ask questions for free from someone who can give the best answer? ;)
     
  4. jcottier

    jcottier New Member

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    As far as I am concern, payment from Apple or any other portals are royalties rate. They are the salers, they managed the customer, not me. Practically, it is them licencing my games so they can sale them and pay me back royalties (actually, it is also the same with Plimus and BTM). So, check what is your legislation regarding royalities.

    JC
     
  5. Jamie W

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  6. Jamie W

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    Yup, have an accountant now. We're still getting clarity on the VAT thing with Apple (he's a mate, and normally does accountancy for bigger firms; the Apple VAT thing is not something he's come across before).

    He's asked me to find out, which legal entity (i.e. Apple subsidiary) I get paid by? Any ideas? (Apple UK?)
     
  7. Nexic

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    EDIT: Ignore this, turns out I was wrong
     
    #7 Nexic, Mar 12, 2012
    Last edited: Mar 12, 2012
  8. Grey Alien

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    @jamie Basically Grey Alien Games is VAT registered but I don't log any VAT on the apple payments or any other portal payments because they deal with the VAT as far as I understand it.
     
  9. Applewood

    Moderator Original Member Indie Author

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    I've actually never looked tbh - just check the bank on about the 2nd of the month and see the money's there. I can assure you there's not VAT to pay because Apple do all that for you. (They contribute some of their own USA sales tax back to HMRC)

    When we went indie we went from paying a fair amount of VAT to making refund claims overnight so of course we were one of the "random" firms that got a minor audit. No complaints lodged as a result.

    Now if only they'd chase down the firms like BT and Barclays who owe billions instead of hoping to close down mom and pop operations like mine... Fuckin govt.
     
  10. Jamie W

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    Thanks chaps.

    I've also been in contact with Apple over this, and got a speedy reply from them (which almost made sense to me, but it's kinda 'accountant speak'). So yeah, have all the info we need now, thanks.

    I'm probably being a bit over-cautious with it all, I just don't want to find myself in a situation where I get hammered for VAT on payments from Apple. I should end up with a situation where the VAT man is paying me back the VAT component on all business purchases I make. Woohoo! We like that!! :)

    Anyhow, mucho thanks again.

    Cheers,
    Jamie.
     

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