So it looks like Apple's loophole allowing them to only charge the Luxembourg VAT rate is closing as of the 1st of 2015. This will mean higher app prices (amongst other things) for most European iOS users.
I only picked this up from Mashable's piece on the subject, but if it is correct then today might be a good day to take advantage of the app sales that are still available as from tomorrow the prices not only go up, but also the VAT does too.
Not the best start to 2015, is it?
What a bizarre article.
ReplyDeleteTax laws are not created for individual companies. The same laws apply to all companies be they Apple, Google, Amazon or anyone else.
iOS apps are priced in tiers. It is likely that the tier price will remain the same but the developer will see less direct income from the App Store but would process the increased VAT deduction as with any other income.
It would be up to the developer to move the app to a higher tier if they felt it necessary. Apple made the option to shift the base price calculation from Dollars to Euros available in 2013 hence the shift in the UK from 69p to 99p apps.
I believe thus is limited to apple bc they are based in Luxembourg. Dunno if Google do the same or do a conversion. Amazon would logically also be impacted being based in NI. The looser are devs who are based outside of the Eu?
ReplyDelete