70/30 split between Apple?? 11.3

My team is building an app that in essence, is an Uber but with food. It caters the food to a location and the transaction is processed in the app by using a credit card that the user enters on file but it is done by a payment system such as Paypal or Strippe or Square. It is almost exactly an Uber for food (just the idea behind it). What I'm asking is if Apple will take 30% of the revenue because that will crush the business plan completely. And will they reject the app completely? Since we are selling a physical good does it still apply or not?


Thanks guys, any help at all is very apreciated.

No. The 30/70 revenue split applies specifically to in-app purchases and app downloads. IAP is actually not allowed for purchasing real-world goods and services, so you have to use some other payment system, for which the revenue split would not apply. If you want to be 100% sure before you get too far into the project, how about contact the App Review team directly to ask them your question: https://developer.apple.com/contact/app-store/

One issue you may have is your purchases are "processed in the app by using a credit card". According to one definition of 11.2 you can't have such a payment system in the app. You must direct your users to a website outside the app (not with a 'buy' button but with a button earlier in the process) and only once the user is outside the app can you then have them execute the purchase.

Thank you for your response. Do you have any insight on how Uber works? I believe one of the first things you're prompted to do is enter credit card info so Uber can collect payments.

No idea how it works 😟


However, if you replicate what Uber's app does, you might stand a better chance of being approved.

First, check out whether Uber actually does that on the first screen and whether the user has a sense that they are entering their credit card info 'in the App' or in Uber's website to which they were directed from within the app.


Then give it a shot and tell us what happens. But I don't think you will be able to argue successfully that 'Uber does it'. I tried that and I still couldn't stay up to watch Gunsmoke like my older brother did.

>any insight on how Uber works


How does the Uber payment method work?

  • Visit the main menu of the Uber app and select the Payment option or credit card icon to enter your payment information. Once your credit card, PayPal, or other payment info is in the app, all fee payments happen automatically.


So, as you said in your first post "It caters the food to a location and the transaction is processed in the app by using a credit card that the user enters on file but it is done by a payment system such as Paypal or Strippe or Square."


Just remember that Uber may rely on a relationship w/Apple that isn't generally available to 'normal' devs, so unless you already enjoy concierge service w/app review (in which case you wouldn't be here, I think), you may have to make your own case on it's own merits. But if all you're worried about is paying 30% to Apple, in your example, and as already noted, that won't be likely.

Hold it!!! What are you complaining about here. You wrote above " the transaction is processed in the app by using a credit card" and that might be a violation of 11.2. Uber does not collect the payment within the app. Uber collects the credit card info in the app but the payment is done by the Uber driver on a different system. Move on.

Am I right in saying apple's 70/30 split is actually 41/59 as they deduct 11% tax on top of the 30%?

The split is exactly as it is specified in the payment schedule in your paid applications agreement. Depending on region, country, and tax system involved (and things like whether the person purchasing the app pays the tax in addition to the app sales price), the amount of money collected and your share of it changes.


For example, around here I end up paying more than the app price because I pay sales tax in addition to the app list price. So the customer might pay $1.10 for a $0.99 app, which results in $0.11 submitted for taxes and $0.99 divided between Apple and the Developer. If the situation was that the customer paid $0.99 and the government wanted $0.11 tax on that, that leaves $0.88 divided between Apple and the Developer, so the Developer's revenue will be less. The split on that $0.88 is still going to be roughly 70/30, though.


In other words, if the tax gets taken out of the amount collected, you're getting a share of the amount left over, not a share of the pre-tax amount. Everyone gets to suffer the taxes.

Thanks for the reply, so in short if the in app purchase is $10 you get $7 and deal with the taxation on that revenue to your tax office in your own region? Apple will only deduct $3?

So, in short, "the amounts are as specified in the payment schedule". Because the payment schedule deals with all of the details such as rounding, fractions of units, and the rest. The specific tax situation is specified for each region, as well.

Is there a way to see what this would work out to before an agreement is in place with Apple?


For example I need to know what percentage of tax I would be paying in the US before I can set the price of my app.


We are based in South Africa, so how do I calculate the net amount receivable by me after US taxes? (I'm referring to income tax and not sales tax)

If you don't reside in the US, you don't pay income tax in the US.

70/30 split between Apple?? 11.3
 
 
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