Selling iphone apps

[Alpha]

Can any of the vat specialists on here provide an insight as to the vat treatment of the supply and of the agents commission when selling iphone apps via the apple apps store?

[elainec100@cheapaccounting]

Do you want me to ask Steve K on this?

[Alpha]

Do you want me to ask Steve K on this?

I would currently be asking anyone who could supply an answer:D

So I suppose the answer would be 'yes please':)

[elainec100@cheapaccounting]

I have always hating this being written but I have sent you a PM as Steve will have a chat and I didn't want to put his contact details on here

[Zeno]

What's an Iphone app?

[elainec100@cheapaccounting]

What's an Iphone app?

no you are just being obtuse :cool::cool:

[Alpha]

Elaine

That was a very useful and informative chat with Steve.

Thanks for arranging it :)

[awebapart.com]

Can any of the vat specialists on here provide an insight as to the vat treatment of the supply and of the agents commission when selling iphone apps via the apple apps store?
I'm certainly not a VAT specialist but my company used to develop and sell mobile phone games (http://www.abstractworlds.com/strangemaze) (Java apps not iPhone apps) around the world via publishers and distributors in other countries.

With iPhone apps isn't the agent Apple? Or perhaps more precisely isn't Apple the publisher/distributor/retailer? And the money Apple provides to the app owner a royalty? In which case I would guess it is a similar set up, or can be treated as a similar set up, to selling software to an American retailer at wholesale prices (the equivalent of your royalty received). You don't then have to worry about other tax implications regarding what states or other countries the retailer sells your app to, the final customer, since your only customer is Apple.

There may be other complications depending upon whether other revenue streams are used for the iPhone app, e.g. selling virtual currency or advertising, or whether Apple is doing something more involved with its sales and reporting.

It would be interesting to hear what you find out.

[elainec100@cheapaccounting]

Elaine

That was a very useful and informative chat with Steve.

Thanks for arranging it :)

good - glad it worked out. He does know his stuff - hate it when he quotes the chapter and section at me though ;);)

[MrBriz]

Hi Alan,

Could you please post the info you found, as I am in the same situation. I am currently starting a business and I am wondering about the tax implications of apple being the agents. If you could PM me and we could chat it would be really helpful!

[Kevin Hall]

MrBriz, do tread carefully even with Alpha's detailed response. The supply of software and the use agents (disclosed or not, disbursing or not, etc.) involves a few VAT complexities for which the facts need to be fairly precisely known.

Hopefully Apple have one standard contract for acting as agent which will then give the same VAT result for all. But the risk is that, if your case is not exactly the same as Alpha's, the VAT outcome might be different for you.

Perhaps Alpha could post more details of his scenario, and perhaps you can post more details of your scenario?

[elainec100@cheapaccounting]

Kevin - Alan (Alpha) had a chat with our VAT expert Steve Kettle and got expert advice on his client's situation off line, given the complexities of the circs. This was some time ago given the date of his original post.

[Kevin Hall]

Elaine - thanks, but it was already very clear that Alpha had spoken with your in-house VAT specialist. However, if you take a look at the previous post (last entry on page 1), you will see that MrBriz has resurrected this thread wanting to follow the same VAT issues as Alpha had outlined; but for which I was counselling a little caution (in case the facts of each case were critically different) and for which I requested that Alpha give us a follow-up on his scenario.

Of course, I am assuming that Steve Kettle is still unwilling to contribute directly? His comments on the outsome of this particular scenario would be welcome. Or perhaps you could give a summary of the VAT outcome?

[elainec100@cheapaccounting]

Of course, I am assuming that Steve Kettle is still unwilling to contribute directly?


Bizarre comment :|:|

He was very willing to give Alan the free advice that he needed on his specific circs. :rolleyes::rolleyes:

He is not a member here :)

Not sure why that is an issue and why it is assumed that he is unwilling in any way. Hopefully just a bad choice of words :|:|:|

[Kevin Hall]

Given that you, Alpha and Steve Kettle were the only ones involved in the scenario which MrBriz is considering, I think Steve Kettle would be the best person to summarise the VAT outcome for us here. Would he be willing to do so?

[elainec100@cheapaccounting]

Given that you, Alpha and Steve Kettle were the only ones involved in the scenario which MrBriz is considering, I think Steve Kettle would be the best person to summarise the VAT outcome for us here. Would he be willing to do so?

The info is client confidential as it was a specific issue for one of Alan's clients.



I am leaving it as that. Enjoy the rest of your weekend.