How VAT is handled by Apple and Google Play
Apple and Google report on Value Added Tax (VAT) differently, and that impacts the Gross Revenue
number we report.
The Gist
- Apple's
Gross Revenue
includes VAT. - Apple's
Net Revenue
does not include VAT. - Google's
Gross Revenue
does not include VAT. - Google's
Net Revenue
does not include VAT.
Example
Let's start with the app purchaser based in Denmark, a country that requires VAT.
VAT on the Apple App Store
On the App Store, the purchaser downloads the app and pays 1.00 kr. (that's Danish Krone)
VAT is built into this price, so the Gross Revenue
will be reported as 1.00 kr.
The Net Revenue
deducts both VAT and Apple's fee. If VAT is 20% and Apple's fee is 15% Net Revenue
will be 0.68 Kr.
VAT on Google Play
On Google Play, the purchaser downloads the app and pays 1.00 kr. (that's Danish Krone)
VAT is built into this price but the number Google reports to developers is what remains after VAT is removed, so in this case, the Gross Revenue
will be reported as 0.80 kr.
The Net Revenue
deducts both VAT and Google's fee. If VAT is 20% and Google's fee is 15% Net Revenue
will be 0.68 Kr.