For whose account the Apple pay VAT in Russia?

Since the beginning of this year in accordance with the so-called “Tax on Google” Apple pay Russian VAT of 18 % with sales of apps, music and other content in the App Store and Google Play. For many it was a surprise that the company did not increase prices, and included it in existing ones. So at whose expense Banquet?

Many of you probably already guessed — payments fall on the shoulders of application developers. In particular, this was confirmed by MacRumors, when told of the price increase in the App Store in the UK because of the devaluation of the pound sterling. The information was confirmed by some of the creators of applications.

In fact, developers now have a choice — either to reduce their own income because of the tax, either by to increase the price of their apps. To do this, they can choose one of the available price bands — the so-called “galleries”. For example, the developer may increase the price of 75 rubles to 149 rubles. But not the fact that this will increase the sales of its application.

The practice of levying taxes from the developers is common not only in Russia. Similarly service tax of 14 % is payable in India and in Romania (20 %).

Clifton Nichols

Clifton Nichols

Hi! I’m Clifton and I am a full-stack engineer with a passion for building performant and scalable applications that are beautiful and easy to use.

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