Need VAT when invoicing to Apple?

Money you receive from Apple is a distribution on which VAT has already been paid by Apple. For example, if Apple sold 71.43 Euro worth of your app then they would have charged that plus a, for example, 20% VAT (14.28 Euro) or 85.71 Euro total revnue. From the 85.71 they would subtract the VAT to get 71.43 Euro net revenue then calculate 70% of that net to get 50 Euro.

It is unclear what you mean by 'make an invoice'. If you are subject to income tax then your revenue, net of VAT, is 50 Euro. Some of those sales may be in countries for which there is not VAT.

Hi PBK,

thanks a lot for reaching over. Your answer is very clear but I did have those info. In fact I was actually wandering what to include in my invoice to Apple.

Indeed i got those 50 Euro, which were calculated as you correctly stated. But now, in order to receive these 50 Euro, I should release an Invoice to Apple. Since Apple is based in Luxembourg (soon moving to Ireland), any develper based out of Luxembourg should just release an Invoice stating:

December Proceeds = 50 Euro,

+VAT (or Sales tax) = 0 Euro

Total 50 Euro

Unfortunately FamilyPlug IS based in Luxembourg and any invoice within companies in the same country should include the (20%) VAT. Therefore, according to Luxembourg legislation, my invoice should state:

December Proceeds = 50 Euro,

+VAT (20%) = 10 Euro,

for a Total of 60 Euro

I know there are probably very few Luxembourg-based developers but we will need to solve this asap!

Thanks

Mattia

>I should release an Invoice to Apple.

In that example, I wouldn't waste time here in the dev forums, especially with the new address change*.

I'd call dev support if it's urgent (if they aren't the exact contact point, perhaps they can help steer you there...just don't let them push you back here ), or use the contact us tree via iTunes Connect, otherwise.

Worldwide Phone Number List: https://developer.apple.com/contact/phone.php

Good luck.

-=-

*1.26.17 - If your company is currently required to send invoices to Apple Distribution International, starting February 5, 2017, all invoices should be sent to Apple Distribution International in Cork, Ireland at the following address:

Apple Distribution International
Internet Software & Services

Hollyhill Industrial Estate

Hollyhill, Cork

Republic of Ireland

Thank you for your business.

Best Regards,
The iTunes Store team

> But now, in order to receive these 50 Euro, I should release an Invoice to Apple.

No. You do not need to invoice Apple. They will send the amount due you, by wire transmission, directly to your chosen bank.

Oh, I see now that for certain royalties in certain countries you may need to invoice Apple: http://itunespartner.apple.com/en/movies/faq#!

I guess it is invoice net of VAT but I don't know. Sorry.

And here is a post that addresses this issue:

http : // www . flexicoder.com/blog/index.php/2010/06/payments-from-apple-cpmpany-vat-return/

Technicall it's a "Reverse Charge" invoice in the EU. Apple has moved out of Luxembourg to Ireland so you won't need to pay any VAT.

Just look up Reverse Charge and how your local tax authorities handle it (here in Germany you need to write a little statement that it's Reverse Charge and the VAT has already been paid by Apple). Doesn't matter if your registered for VAT or not. (

Now you don't really need to send the invoice to Apple. I'm required to keep a copy of the invoice by my local tax authorities though so I print it out and put the print out into a folder. That's all.

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

It is really frustrating that Apple doesn’t allow to download some sort of invoice to make developers bookkeeping easier. Personally I use invoice generator Created by exelerus (search for ‘exelerus invoice generator’), but I would love to simply download something like that from iTC instead.

In App Store Connect, click to Agreements, Tax and Banking > Contact Us (at the bottom) > select Reports and Payments > Tax and Banking Setup > Contact Finance > Invoicing Apple for Apps.

In the Invoice Upload field, select your invoice file in PDF format. Apple Distribution Interntional's VAT ID is IE9700053D.

Hello

Thank you omi44g for providing the "exelerus invoice generator" as an easy Invoice solution. I tried it out but even there were sales in Mexico in my test csv. file i couldn`t find "Apple Services LATAM LLC" in the pdf which should be responsible in Mexico under the Schedule 3 agreement. Have you done some checks on the correct listing before using it?

Greetings

If my company is registered in Poland and my mobile apps are sold all over the world. Which company should I bill? Which company does Apple charge a 15% commission to? After all, according to Schedule2 agreement in ExhibitB.2 my agent in Canada is Apple Canada, in the US is Apple inc, in Europe is Apple Distribution Interntional, etc. ?

I'm struggling with the VAT now. The VAT in the invoice we send to Apple is 0%, right? How we can explain it to the governance?