Clarification Regarding VAT Tax Remittance for App Store Income

Question

Created Jan ’24

Replies 2

Boosts 0

Participants 2

We are currently experiencing an issue in accounting for the income obtained from the App Store. As stipulated in the Paid Agreement, the App Store is responsible for collecting and remitting VAT tax to the relevant tax authorities in Vietnam. We seek your assistance in addressing the following concerns:

Do we still need to remit VAT tax for the income deposited into our bank account?

If VAT tax remittance is not required for the income deposited into our bank account, how can we provide documentation to support this in our accounting records?

Boost

Answer 1

endecotp OP

Jan ’24

You are in Vietnam, right? I'm going to assume that VAT in Vietnam works in a similar way to VAT in Europe. That might not be true. If in doubt, talk to an accountant.

You can ignore where the users are. The only transaction that matters is the transaction between you and Apple. You sell only to Apple. You handle the sale to Apple in your accounts exactly as any other business-to-business sale.

To which part of Apple do you make your sales? I.e. do you receive your payment from an Apple subsidiary in Vietnam, or do you receive it from a foreign entity? (For example, I am in the UK and I sell to and receive my payments from an Apple subsidiary in Ireland.)

If you receive the payment from an Apple entity that is not in Vietnam, which I think is likely, then it is an international business-to-business transaction. In European VAT accounting this is "reverse charged", which means in practice that there is no VAT. Technically, in the accounts my business both pays and reclaims the same amount of VAT so the balance is zero.

1

Answer 2

minhnguyen8732 OP

Jan ’24

As I read from the Exhibits, Apple asked me to pay VAT. Is it correct? Screenshot 2024-01-25 at 02.05.25.png

0