3 Replies
      Latest reply on Jan 21, 2020 1:26 PM by BarryD0706
      BarryD0706 Level 1 Level 1 (0 points)

        No, I'm not asking for tax advice here.


        What I would like ot know is...how are most people handing the requirement in the Section 2, Exhibit B, number 2 ? At the time of this writing it reads:
        "2. Apple shall not collect and remit the taxes described in Section 3.2 of this Schedule 2 for sales of the Licensed Applications to End-Users located in the countries listed below, as updated from time to time via the App Store Connect site. You shall be solely responsible for the collection and remittance of such taxes as may be required by local law."


        I am a tiny company. I assume that if Apple found it not worth their effort to figure out that tax requirements in that long list of countries, it is not something that any of us would want to try to handle either?


        Am I missing something? So mostly everyone is just not selling in those countries? (Sadly, a couple of my Beta testers were in one of these countries and I fear that I must now abandon them.)

        • Re: Taxes in Exhibit B.2 countries
          PBK Level 7 Level 7 (3,435 points)

          As long as you are not residing in any of those countries, I suspect you can wait for the tax representative to contact you and ask you for the $4.23 you might actually owe.


          Interesting scam - write to all developers demanding some small payment for taxes owed in Yugoslavobiaville.

          • Re: Taxes in Exhibit B.2 countries
            Wh1974 Level 1 Level 1 (0 points)

            I too have the same question as you. I've even copied the same piece of text as you hoping somebody could help.


            The easy solution would be to restrict my apps to only those countries listed in EXHIBIT B. Number 2. Alternatively maybe we could distribute our app for free in thoss countries.


            It would be interesting to hear from other developers who sell internationally about what they do with regards to tax collection.



              • Re: Taxes in Exhibit B.2 countries
                BarryD0706 Level 1 Level 1 (0 points)

                Wayne, based on the silence, I think people are hoping they don't get caught, not realizing that in some cases, the penalties may far exceed the amount they would owe otherwise.


                I did exactly as you (intended to) describe. I only sell in countries listed in Number 1. That's about 50 out of the 150+ that Apple claims to support us in. Very sad. In my case, this forced me out of a large group of potential customers in just one of the countries.


                As for distributing for free, that's not really practical either because no way is provided to do per-region pricing, except for subscriptions.

                TestFlight is the only possibility... as long as you release an update every 90 days or less.