Buy in app tax

Apple charges all developers (no matter what country) 30% of the app selling price and 30% of any in app purchases.

If you want to know what your percentages are, you need to look at the payment schedules in the paid application agreements.

Because:

• It's not exactly 30% anywhere due to accounting and rounding.
• It's not exactly 30% because some regions have tax added to the price bands, and some regions VAT and other tax are paid to the local governments.

Read your developer agreements.

I may be mistaken but, looking at my own revenues, I have always believed that

taxes are added to the total sale price BUT, come out of the sellers 70%. Apple clearly

states the developer/seller is responsible for any applicable taxes. As such, I believe

the 30% is on the set sale price, not the price+applicable taxes/fees. Apple collects the

taxes/fees on say .99 cent app, passes those on to the relevent agencies and then

takes it's 30% of .99 cents. Leaving the seller with .69 cents - whatever the tax was.

So, if the app, with taxes and fees ends up costing the customer $1.25. The seller

would receive .43 cents or so of the sale.

Let's remember, developers get 70% of the sales revenue, not the *****.

Hi,

Where can I see an example of the developer agreements?

Before I can set the price of my app I need to know how much tax I will be paying in the US (our company is based in South Africa).

As I understand it Apple withholds the US taxes from the 70% of the app price attributable to me (they will have to pay their own tax out of the 30% they keep for themselves).

How can I calculate how much net revenue I can expect to receive from the sale of each app?