I have a few questions regarding the earnings obtained from selling Apps in Play Store and App Store. How it works?
*I was reading that Google and Apple take away 30% fee.
*Should I include the taxes in the App sale price?
*Must I have a merchant license with the state and report the profits?
Thanks
DoDi
Both stores take 30% of the selling price up front.
They handle sales tax by locale/region by charging the customer more.
You need to have a bank account linked to your Google and Apple accounts to get paid.
I don’t know what you mean by merchant license, but if you earn money you must pay taxes.
Assuming you are in the US, you do have to pay state and federal taxes on your earnings just like you would for any other earnings.
Apple and Google will report to the IRS how much money you earned from them.
(If you are not in the US, I have no idea how taxation works in other countries, but I’m sure Google and Apple will still report your earnings to the proper taxation organization.)
You can also find these typical app store related FAQs answered if you check with the stores in question.
If you are EU then you need to file forms with the IRS otherwise you will lose 30% and then another 30% to IRS.
I’m in Canada and Apple pays GST (goods and services tax) to the Canadian gov on my behalf, even though this is technically unnecessary since I don’t make enough on my apps to meet the threshold where you have to collect and submit GST.
I’ve often wondered about this: if someone buys my app in, say, Iceland, or South Africa, or wherever, can we assume Apple/Google are paying the sales tax to the relevant gov for us?
The short answer is yes.
The more elaborate answer is:
If there is one thing governments are good at and have unlimited staff working on, its filling their pockets, you dont’ have to worry about a thing :). Its brilliant if you think about it. You make the app, you pay the costs, you do the hours, they cash in on it.
Both stores take 30% of the selling price up front.
They handle sales tax by locale/region by charging the customer more.
You need to have a bank account linked to your Google and Apple accounts to get paid.
I don’t know what you mean by merchant license, but if you earn money you must pay taxes.
Assuming you are in the US, you do have to pay state and federal taxes on your earnings just like you would for any other earnings.
Apple and Google will report to the IRS how much money you earned from them.
(If you are not in the US, I have no idea how taxation works in other countries, but I’m sure Google and Apple will still report your earnings to the proper taxation organization.)
You can also find these typical app store related FAQs answered if you check with the stores in question.
If you are EU then you need to file forms with the IRS otherwise you will lose 30% and then another 30% to IRS.
I’m in Canada and Apple pays GST (goods and services tax) to the Canadian gov on my behalf, even though this is technically unnecessary since I don’t make enough on my apps to meet the threshold where you have to collect and submit GST.
I’ve often wondered about this: if someone buys my app in, say, Iceland, or South Africa, or wherever, can we assume Apple/Google are paying the sales tax to the relevant gov for us?
The short answer is yes.
The more elaborate answer is:
If there is one thing governments are good at and have unlimited staff working on, its filling their pockets, you dont’ have to worry about a thing :). Its brilliant if you think about it. You make the app, you pay the costs, you do the hours, they cash in on it.