But what is the change?
And I still believe the issue only is in the mind of the people as they don’t understand how VAT works.
And the lack of memory (for those old enough).
What was the situation before the App Store ?
Software were sold in shops / Developer sold their software to a company who sold to shops…
So 30% (Company) + 30 % (Shop) = 40% of the price that comes back to the developer.
And I would not talk about Developer demonstrations of its sotfware @ Events, etc.
A second thing comes to mind:
I cannot buy an “object” in Germany (3 km from my house) if it has an electrical outlet with earth: these are different (and not compatible) in France and in Germany… And the commission takes care of standardizing the sockets of the iPhone ?
iPhone is sexy; wash machines are not ?
According to the article, developers are being charged 33% by Apple, not 30%. SK government thinks this is wrong.
Is this done in other countries?
Still I wait for someone to show a calculation on what is wrong!?
e.g. 100 WON of product sold.
customer pays 110 with 10% VAT in South Korea.
Now apple gets 33 with VAT and developer 77.
Or after delivering tax, Apple gets 30 and developer 70.
Carousel fraudsters certainly understand how VAT “works”.
That’s still a 30:70 split so that doesn’t seem to be the issue being encountered.
Do you honestly think the South Korean government would get involved if it was as simple as a couple of developers not understanding how sales tax works?
From what I can find and understand online.
Apple deducts sales tax from the gross, and then splits the reminder 30/70. However it appears in SK, they’re deducting sales tax, and then splitting 33/67.
Maybe there are countries with different tax rules.
Let’s say in your example the developer gets 77 but the government asks them for the whole 10% tax, so they have to give 10 to the government and they end up with only 67. The developer sells at 110, pays the sale tax to the government 10, and Apple gets 33.
I think in Mexico that is the case, the person selling is responsible for the whole sales tax.
If they do that calculation, that is wrong.
But I remember looking up the proceedings in the Apple Developer dashboard for my app and the values looked correct.