I am upset on Apple… they will update their prices in App Store, especially for EU the prices get 20-25% additional Price-tag. Apple once started with the promise to keep 30% and letting the remaining 70% for the Author. This was fair but take a look on this sheet (Tier 19)! Today this looks like this:
(Kundenpreis - End Users Price, Erlös = remaining income)
Shame on you Apple… I am too small for double Irish, Dutch or Luxemburg Tax-Swap-Deals like you Apple…
I’d be complaining to apple that in countries where VAT is used they should ADD VAT to the price not deduct it from what the author receives
Thats just wrong
[quote=158133:@Norman Palardy]I’d be complaining to apple that in countries where VAT is used they should ADD VAT to the price not deduct it from what the author receives
Thats just wrong[/quote]
It is not as simple. The VAT thing is a new enforcement on Apple and Microsoft of the rule of the VAT, which clearly is a tax levied on a percentage of the list price. In other words, contrary to the local tax, VAT is always included in the end user list price, never added. Whenever Apple charges 100, EU governments demand their share of for instance 20% for France.
So in effect, for a list price of 100, Apple now perceives 80, and no longer 100. Hence 80-30% = 56. Blame the European governments greed, not Apple.
If it were possible to change prices to compensate VAT, what is now 100 would have to be changed to 125. Apparently, Apple decided to go for 11.49 for tier 10. But nothing prevents going tier 11, and the VAT cut is entirely compensated. So it is upon the author to decide if he raises the price to compensate, or if he lets the European countries take a cut out of his profit.
What is most wrong is that the MAS does not allow to choose different tiers for the US and EU.
The very same thing is happening in the Windows Store, BTW.
I think now is the time for Apple to allow per country tiers to be set. I think this will help with this issue.
New prices are out and I am curious, they announced 21,84 EUR but now it is 18,99… what the heck!
[quote=158273:@Tomas Jakobs]New prices are out and I am curious, they announced 21,84 EUR but now it is 18,99… what the heck!
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18.99 is $ 22.43 at todays exchange rate. Minus 20% VAT in France, it comes to $17.94 gross sales. It does not entirely offset the tax, but it is fairly close to the US price.
I just looked at my earnings last month. Euro represented only 16% on what I make in US Dollars. I realize proportions may be reversed for for others. Right now the impact of the increase in VAT is somewhat limited.