Hi Barry and everyone! Its a very good question. We sell in all the countries that Apple allows, including the countries in the Exhibit B.2. Unfortunately I have, despite long and tiring discussions with my Accountant, still the exact same question (as I am not convinced of his answer) . I find it very strange that Apple would transfer only some of the money VAT free and some not. It would be very messy and more hassle than its worth (unless you're earning some decent $ from those places ) I expect. If Apples doesn't pay it locally do we need to?? So far my Accountant tells me that my company is responsible for paying that 'missing' VAT, this means that every month they need to sit down and calculate out all the sales per country for the ExhibitB.2 countries and work out how much VAT that is that I need to pay locally to the government as a result. As someone mentioned, it really is the question whether any of those countries would bother to chase this money down, also I wonder why, if VAT is due on these sales, Apple wouldn't have to just pay it to begin with? In any case if anyone else knows the answer to this (particularly of interest to me would be the German rule/law as this is my country of residence). Thanks! Pete

Hey guys, I know this is an older post, but I hope people still find it! I live in Germany and my accountant says that Germans do need to provide an invoice for the sales addressed to Apple. He said that it doesn't even need to be sent to Apple but the government wants this letter. Regarding VAT, I would love to hear from others what their accountants say, mine says that NOT all the app sales are VAT free! There is a long list of countries in the documentation from Apple in the Schedule2 agreement in ExhibitB.2 where it states that there are many countries where Apple does not pay the VAT, my accountant say that this responsibility falls on my company and we need to pay that tax! Which I can hardly believe. I find it very odd, that Apple transfers only part of the money VAT free, there are actually more countries for which it does not pay the VAT than it does. This makes the book work very complicated as you need to work out every month how much VAT Apple didn't pay and pay this locally. If your app brings in only 50EUR then it would be absurd to work all this out each month, as you'd pay your accountant more than that for all the extra work. I don't understand if these countries just all don't ask Apple to pay VAT (meaning there is no VAT owed on these sales) or why Apple wouldn't pay tax there? Surely if the government asked for VAT Apple would have to pay it and not leave that up to the developer to do!? If anyone has any insights I would very much appreciate it!! Best Peter