Apple always adds VAT to prices

I wanted to buy Final Cut Pro X but Apple automatically adds VAT to their prices.
I called them, mailed them saying I have a VAT number (read: company) so in that case I do not need to pay VAT.

They keep telling me EU VAT regulations forbids them to do this. But this is of course bogus. I even gave them official EU Regulation links saying they may not add VAT, but still they persist.

Finally I gave up … and installed a ‘test’ version. Why is Apple always stubborn … they always know things better …

you should simply get an invoice with VAT of your country.
And you can reclaim that easily.

I am happy that Apple since 2015 correctly declares VAT.
Getting back Irish VAT is difficult.

[quote=260920:@Christian Schmitz]you should simply get an invoice with VAT of your country.
And you can reclaim that easily.[/quote]

Yes true. But normally they should not add VAT in the first place. :slight_smile:

I don’t think that’s correct. They should add VAT but list it separately, as they do. It’s up to the business buying to reclaim VAT. Otherwise the system would not work. Imagine

Business A sells for £100 to business B.

Business B sells for £200 to business C

Business C sells for £300 to customer.

In your thinking business A, B, and C pay no VAT at all. The customer pays all the VAT.

By paying VAT at each transaction and claiming back the VAT they paid, businesses pay VAT on the price differential

VAT doesn’t have to be added for B2B transactions at all. I think this is since Jan 1st 2015.
However, I think they are allowed to do so because it can always be reclaimed.

edit: http://ec.europa.eu/taxation_customs/taxation/vat/how_vat_works/telecom/index_en.htm

When people criticized Apple’s decline in software QA, two high profiled Apple reps came out and told the world how their QA process is better than everyone else’s.

When people became concerned about Apple’s security recently, they told everyone that they’re the best at security. I might have believed them, if I wasn’t aware of a security hole in OS X, that Apple hasn’t fixed for a very long time.

I would suggest that you also give Adobe Premier a try; it seems to be the tool that Videographers are switching to. Some dumped Apple after Aperture being replaced with Photos and some have dumped FCPX because it’s unstable. I have no experience, I’m only going what my friends who work in the video industry have commented.

[quote=260920:@Christian Schmitz]you should simply get an invoice with VAT of your country.
And you can reclaim that easily.[/quote]
We found out that as a business you need a Volume Purchase Program account with Apple so they stop charging VAT - https://vpp.itunes.apple.com/faq (question 4).
If you buy software from Apple as a private citizen you are charged VAT from Luxembourg (iTunes’ VAT ID LU20165772). In Sweden you cannot redeem that VAT and as a business entity you end up paying 25% more that you should.

Well, I got the answer now. I got a friendly email this time that explained iTunes/App Store cannot be used for business.
This is what they are referring at:

Please look at the iTunes Terms and Conditions that you agreed to when you signed up for an iTunes account, as iTunes is not to be used for business use.

USAGE RULES
(i) You shall be authorized to use iTunes Products only for personal, noncommercial use."

Very odd … so any software you buy on the AppStore cannot be used for commercial use. Bummer. Odd … so Final Cut Pro X is hobbyist only. :slight_smile:

Anyhow, as Christian mentioned, you can ask for an official invoice which mention your VAT so you can reclaim VAT later.

Interesting. Will read this. The helpdesk didn’t mentioned this. :slight_smile:

The Volume Purchase Program is rather useless for SMBs. Or does anyone here have a DUNS number?

[quote]1. Who can participate in the Volume Purchase Program?
Employees of D-U-N-S-verified businesses are eligible to participate. After signing up, users can view, search, and purchase iOS apps and books through the Volume Purchase Program.[/quote]

I do have one.

You are perfect :slight_smile:

Our company does. We had to get one to be verified to sell on Mac App Store if I remember correctly.

You need one to sell apps on he App Store under a company name.

I dumped Aperture for Lightroom when Apple made the Aperture interface monochrome. Shortly after that they launched their “Pro” apps in the App Store and everything about the app started slowing down. I began to experience Kernel Panics flipping through photos. Like, go home Aperture, you’re drunk.

I haven’t had any crashes in Lightroom, and it’s faster than Aperture - would definitely recommend.

Can’t speak for video processing software though

I’ve tried to migrate to Lightroom, several times. It can’t quite import my existing library correctly (ends up with triplets of each photo), and using it makes me feel like I’m using a Mac OS 7 application again, just on Mac OS X.

I’ve also tried to get by with Apple’s Photos, but it blows chunks. Although I have a plan for fixing that!

I don’t know about OUTSIDE the USA (ie. VAT tax)… but INSIDE the USA, “Sales Tax” is collected on every purchase, except those for resale (and your need a Reseller License)… and since you are not allowed to resell software you buy from the Apple Store, this makes perfect since (at least for the United States). If you were reselling, then the “Volume Purchase Program” makes sense.

So if I buy software (XOJO for example), or a new computer that I use in my business, I must pay “sales tax”, as I am not selling XOJO nor am I selling computers. I can deduct a percentage of those expenses from my income tax each year, but that is another matter, but I still pay the tax up front.

Again, this is the USA, your country may vary.

[quote=260913:@Christoph De Vocht]I wanted to buy Final Cut Pro X but Apple automatically adds VAT to their prices.
I called them, mailed them saying I have a VAT number (read: company) so in that case I do not need to pay VAT.[/quote]

Why do you feel that you not need to pay Value Added Tax? Both consumers and businesses are liable to pay VAT when purchasing services or products. You cannot resell FCP.

Dun & Bradstreet (D&B) provide a D-U-N-S Number to any legitimate business. It, amongst other things, can help show the credit worthiness of a business. Consider it the Social Security number for a businesses. Many companies use it to ensure the legitimacy of a business.

[quote=261108:@Dave S]I don’t know about OUTSIDE the USA (ie. VAT tax)… but INSIDE the USA, “Sales Tax” is collected on every purchase, except those for resale (and your need a Reseller License)… and since you are not allowed to resell software you buy from the Apple Store, this makes perfect since (at least for the United States). If you were reselling, then the “Volume Purchase Program” makes sense.

So if I buy software (XOJO for example), or a new computer that I use in my business, I must pay “sales tax”, as I am not selling XOJO nor am I selling computers. I can deduct a percentage of those expenses from my income tax each year, but that is another matter, but I still pay the tax up front.

Again, this is the USA, your country may vary.[/quote]
Actually, this isn’t true for Software, software purchased in California is not subject to sales tax if it is delivered electronically. If you get it on physical media in any shape or form, you then must pay sales tax on it. Doesn’t mean Apple doesn’t charge sales tax in some cases, but per California law, they shouldn’t be charging it.