Question re VAT on app sales in UK

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Created May ’22

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Please could someone with a company based in the UK let me know how the VAT/commission deduction works on app sales through Apple? If the customer pays £5.00 then is it as follows:

User pays = £5.00; 20% VAT deduction = 83p; Net = £4.17; 30% commission to Apple on net of £4.17 = £1.25; Net payment to developer = £2.92.

And does Apple provide a VAT statement on all sales too?

Thanks - can't work this out from the lengthy Paid Applications Agreement!

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Answer 1

Francesca121 OP

Oct ’22

Hi

i have the exact same question. I can’t understand why Apple is deducting VAT from my service as I’m not registered for VAT. If I were registered, I would levy output VAT on all my sales through my apps, but I’m not.

And it seems Apple is levying the VAT on behalf of me? As far as I understand, the VAT is not based on Apple’s revenue, but rather from my revenue stream. Unless I’m missing something. Please assist!

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