Texas Sales and Use Tax for Sellers

I sell an app on the app store.

In Texas we have to file a sales and use tax report every quarter. From what I have read, Apple collects sales tax and remits it to the proper states on our behalf. Is this correct?

If this is correct, then do I report $0 sales tax to the state of Texas since Apple already collected and remitted the sales tax?

Accepted Reply

I sell an app on the app store.

No, Apple sells apps on the App Store. You only sell your app to Apple, wholesale.

I don't know much about how this all works in Texas, but I believe you should probably start by thinking about it in those terms: you are making a business-to-business sale to Apple Inc, not a business-to-consumer sale to John Doe.

In any case, Apple don't tell you what states the end-users live in. So anything that you consider doing which requires you to divide up the end users by state must be wrong.

Replies

I sell an app on the app store.

No, Apple sells apps on the App Store. You only sell your app to Apple, wholesale.

I don't know much about how this all works in Texas, but I believe you should probably start by thinking about it in those terms: you are making a business-to-business sale to Apple Inc, not a business-to-consumer sale to John Doe.

In any case, Apple don't tell you what states the end-users live in. So anything that you consider doing which requires you to divide up the end users by state must be wrong.