Go Back   MacRumors Forums > Apple Applications > iPhone and iPod touch Apps

Reply
 
Thread Tools Search this Thread Display Modes
Old Dec 27, 2012, 12:44 PM   #1
isephmusic
macrumors 6502
 
Join Date: Oct 2012
There's tax on apps?

are you kidding me ? in google play you pay 99 cents its NINTY-NINE cents not a dollar+.06, what does that even accomplish. so if you pay a 25$ app like the big cloud/ office apps will it charge you that extra 7% tax ? thats kind of rediculous who does it go to and why does android not require it but iOS does ?
isephmusic is offline   1 Reply With Quote
Old Dec 27, 2012, 12:46 PM   #2
mobilehaathi
macrumors 601
 
mobilehaathi's Avatar
 
Join Date: Aug 2008
Location: The Anthropocene
Move to Delaware?
__________________
The true way is along a rope that is not spanned high in the air, but only just above the ground. It seems intended more to cause stumbling than to be walked along.
mobilehaathi is offline   3 Reply With Quote
Old Dec 27, 2012, 12:47 PM   #3
Menel
macrumors 601
 
Menel's Avatar
 
Join Date: Aug 2011
Location: Atlanta
Quote:
Originally Posted by isephmusic View Post
are you kidding me ? in google play you pay 99 cents its NINTY-NINE cents not a dollar+.06, what does that even accomplish. so if you pay a 25$ app like the big cloud/ office apps will it charge you that extra 7% tax ? thats kind of rediculous who does it go to and why does android not require it but iOS does ?
That's how sales tax works. Always has. From toilet paper at the general store to gadgets online. State regulation. Talk to your representative.

No tax on my iOS apps.
Where are you located?
__________________
iPhone 6 iPad Air Mac mini (2011)
Menel is offline   7 Reply With Quote
Old Dec 27, 2012, 12:48 PM   #4
Brian Y
macrumors 68020
 
Join Date: Oct 2012
Quote:
Originally Posted by isephmusic View Post
are you kidding me ? in google play you pay 99 cents its NINTY-NINE cents not a dollar+.06, what does that even accomplish. so if you pay a 25$ app like the big cloud/ office apps will it charge you that extra 7% tax ? thats kind of rediculous who does it go to and why does android not require it but iOS does ?
Depends where the transaction takes place. If you buy a 10p sweet - 1p of it will be tax - all purchases are taxed, regardless of size (unless it's considered an essential/exempt item - and I don't think an "app" is classed as an essential)
Brian Y is offline   1 Reply With Quote
Old Dec 27, 2012, 12:48 PM   #5
SnowLeopard OSX
macrumors 6502a
 
SnowLeopard OSX's Avatar
 
Join Date: Dec 2012
Location: Southern California
"There are two things you can't avoid in life -- death and taxes."
__________________
iPad |4th gen Black/ 32GB/ iOS 8.0
iMac |G4 1.0 GHz/ 1.25 GHz PPCG4 (7445)
iPod |Classic Black/ 80GB|U2 edition 20GB
iPhone |4S White/16GB/ iOS 7.0|3G White/16GB iOS 8.0
SnowLeopard OSX is offline   6 Reply With Quote
Old Dec 27, 2012, 12:49 PM   #6
Michael CM1
macrumors 603
 
Join Date: Feb 2008
Did the OP just wake up inside some Internet bubble and never buy anything from an actual store? Are we really asking what sales taxes are for? Really?
__________________
13.3" 2014 MacBook Air; Mid-2010 21.5" iMac; silver 64GB iPhone 6; white iPad Air 32 GB; third-gen TV (x2)
Michael CM1 is offline   1 Reply With Quote
Old Dec 27, 2012, 12:53 PM   #7
isephmusic
Thread Starter
macrumors 6502
 
Join Date: Oct 2012
i know what tax is for im asking WHY is the app store is taxed and not the android one. why the difference ? just curious

haha im not used to paying tax because

Amazon
isephmusic is offline   1 Reply With Quote
Old Dec 27, 2012, 12:54 PM   #8
araje
macrumors regular
 
Join Date: Apr 2012
So which states have sales tax in iTunes or App Store ? Is it the case that some states don't have this tax component?

I heard CA residents will now have tax on amazon purchases starting 2013 but not sure if its really true.
araje is offline   1 Reply With Quote
Old Dec 27, 2012, 01:00 PM   #9
duneriderltr450
macrumors 6502
 
Join Date: Sep 2012
Location: Oregon
Quote:
Originally Posted by isephmusic View Post
are you kidding me ? in google play you pay 99 cents its NINTY-NINE cents not a dollar+.06, what does that even accomplish. so if you pay a 25$ app like the big cloud/ office apps will it charge you that extra 7% tax ? thats kind of rediculous who does it go to and why does android not require it but iOS does ?
I don't pay tax.
duneriderltr450 is offline   2 Reply With Quote
Old Dec 27, 2012, 01:02 PM   #10
jazzbo
macrumors member
 
Join Date: Oct 2008
Location: Bangor, ME
Quote:
Originally Posted by isephmusic View Post
i know what tax is for im asking WHY is the app store is taxed and not the android one. why the difference ? just curious

haha im not used to paying tax because

Amazon
Generally catalog (on-line, phone or by mail) retailers are required to collect sales tax if they have a physical presence in the same state as the purchaser, based on your billing address usually. Otherwise you get into issues of taxing interstate commerce which can be dicey, and why there is occasionally a move in Congress to tax internet sales.

Is there an Apple Store in your state? You'll get taxed in the app stores or other online purchases from Apple.

Does Google have offices in your state? If not, they probably won't collect tax.

Amazon has generally been trying to dodge collecting taxes but my understanding is they generally will in states where they have offices or warehouses.

btw, even if the retailer isn't collecting sales tax, law in your state may mean that you should be declaring a use tax as part of your tax return each year.

Last edited by jazzbo; Dec 27, 2012 at 01:07 PM. Reason: minor grammatical fixes
jazzbo is offline   2 Reply With Quote
Old Dec 27, 2012, 01:03 PM   #11
Rocko1
Banned
 
Join Date: Nov 2011
Quote:
Originally Posted by araje View Post
So which states have sales tax in iTunes or App Store ? Is it the case that some states don't have this tax component?

I heard CA residents will now have tax on amazon purchases starting 2013 but not sure if its really true.
Yes, it's true and it started late this year. Items purchased in CA while living in CA will have CA tax. Amazon has where-houses in CA.
Rocko1 is offline   0 Reply With Quote
Old Dec 27, 2012, 01:03 PM   #12
ucfgrad93
macrumors G5
 
ucfgrad93's Avatar
 
Join Date: Aug 2007
Location: Colorado
Quote:
Originally Posted by SnowLeopard OSX View Post
"There are two things you can't avoid in life -- death and taxes."
Agreed, and the taxes part is only going to get worse.
ucfgrad93 is offline   2 Reply With Quote
Old Dec 27, 2012, 01:07 PM   #13
Baggio
macrumors 6502
 
Join Date: Oct 2012
Quote:
Originally Posted by isephmusic View Post
i know what tax is for im asking WHY is the app store is taxed and not the android one. why the difference ? just curious

haha im not used to paying tax because

Amazon
By law, even though Amazon doesn't charge you tax in your state, you are still supposed to file and pay that tax directly to your state. That being said, not many people do it.
Baggio is offline   1 Reply With Quote
Old Dec 27, 2012, 01:13 PM   #14
isephmusic
Thread Starter
macrumors 6502
 
Join Date: Oct 2012
when taxes are due early next year where would i even put it ? i buy A LOT from amazon because of the free shipping and no tax. would i add it all up ? or is it individual. sorry im a young guy.

but back to the main point. does anyone in any state pay tax on google apps ? i really dont think so and im not sure why the app store in the iOS would charge tax on an app
isephmusic is offline   1 Reply With Quote
Old Dec 27, 2012, 01:17 PM   #15
saberahul
macrumors 68040
 
Join Date: Nov 2008
Location: On my iPad
Quote:
Originally Posted by Menel View Post
That's how sales tax works. Always has. From toilet paper at the general store to gadgets online. State regulation. Talk to your representative.

No tax on my iOS apps.
Where are you located?
From the math, I assume NJ - 7% sales tax. Though many other states could have it but I only know of NJ.
__________________
iPhone iPad MacBook Pro
saberahul is offline   0 Reply With Quote
Old Dec 27, 2012, 01:23 PM   #16
strider42
macrumors 65816
 
strider42's Avatar
 
Join Date: Feb 2002
Quote:
Originally Posted by isephmusic View Post
when taxes are due early next year where would i even put it ? i buy A LOT from amazon because of the free shipping and no tax. would i add it all up ? or is it individual. sorry im a young guy.

but back to the main point. does anyone in any state pay tax on google apps ? i really dont think so and im not sure why the app store in the iOS would charge tax on an app
Google probably doesn't have a physical location in your state, hence no tax. That will probably change in the future, ebcause taxes on internet purchases I think are going to have to happen eventually.

And yes, your state tax return likely has a place where you total up all your receipts and enter them as a "use tax". California does anyways. no one actually pays it, but legally youa re required to. This is why california moved to force amazon to collect CA state sales tax (as have other states).
__________________
It's these little things, they can pull you under.
Live your life filled with joy and thunder.
strider42 is offline   1 Reply With Quote
Old Dec 27, 2012, 01:27 PM   #17
Blorzoga
macrumors 68020
 
Blorzoga's Avatar
 
Join Date: May 2010
Quote:
Originally Posted by isephmusic View Post
when taxes are due early next year where would i even put it ? i buy A LOT from amazon because of the free shipping and no tax. would i add it all up ? or is it individual. sorry im a young guy.

but back to the main point. does anyone in any state pay tax on google apps ? i really dont think so and im not sure why the app store in the iOS would charge tax on an app
It's called Use tax. It is sales tax that you should have paid on a purchase but because the seller is not obligated to collect it (they don't have a physical presense in your state). Very few, if any, states enforce its collection from individuals. However, businesses are routinely audited. Businesses will file a sales and use tax return to report sales tax they collected as well as sales tax they were not charged (use tax).

Depending on your state, apps may or may not be subject to sales tax. In PA, they're considered canned software and are subject to tax.

Incidentally, Amazon just recently began charging sales tax to PA customers because they apparently have established distribution hubs in the state, thus establishing nexus. Sucks for me. Now I have up decide whether its worth driving to Delaware to avoid the tax.

Back to your question, though, don't bother paying the use tax to your state, they won't come after you. Apple has to charge tax on Apps because they have a physical presense in the state.
Blorzoga is offline   2 Reply With Quote
Old Dec 27, 2012, 01:35 PM   #18
jazzbo
macrumors member
 
Join Date: Oct 2008
Location: Bangor, ME
Here in Maine, the income tax form has a 'recommended calculation' of use tax where they take some small % of your net income, or you can declare an exact amount.

If you go multiple years just filling in 0 in the box, you get a 'compliance letter' from the state offering to settle for a certain amount, but I've never heard of anyone getting any type of legal response for not paying. We have ads on TV every now and then reminding people to declare their use taxes.

Subsequently, we have the highest use tax reporting rate at around 10% of tax filers: http://www.governing.com/blogs/by-th...-revenues.html Nationally it is like 1.6% of taxpayers declare use taxes.
jazzbo is offline   1 Reply With Quote
Old Dec 27, 2012, 02:26 PM   #19
darster
macrumors 68000
 
Join Date: Aug 2011
Quote:
Originally Posted by jazzbo View Post
Generally catalog (on-line, phone or by mail) retailers are required to collect sales tax if they have a physical presence in the same state as the purchaser, based on your billing address usually. Otherwise you get into issues of taxing interstate commerce which can be dicey, and why there is occasionally a move in Congress to tax internet sales.

Is there an Apple Store in your state? You'll get taxed in the app stores or other online purchases from Apple.

Does Google have offices in your state? If not, they probably won't collect tax.

Amazon has generally been trying to dodge collecting taxes but my understanding is they generally will in states where they have offices or warehouses.

btw, even if the retailer isn't collecting sales tax, law in your state may mean that you should be declaring a use tax as part of your tax return each year.

Incorrect. I live in a state where Apple has no presence, but they add a sales tax on every purchase. Apple chooses to apply the state sales tax for every state that has one. Google and amazon choose not too. Honestly, I think they should. The money is used by your state to fund education, road work, snow removal and so on. I live in a state with no income tax, and the sales tax is what funds these projects.
darster is offline   2 Reply With Quote
Old Dec 27, 2012, 02:40 PM   #20
Applejuiced
macrumors Nehalem
 
Applejuiced's Avatar
 
Join Date: Apr 2008
Location: At the iPhone hacks section.
They're running out of things to tax...
Applejuiced is offline   2 Reply With Quote
Old Dec 27, 2012, 02:45 PM   #21
Michael CM1
macrumors 603
 
Join Date: Feb 2008
Quote:
Originally Posted by isephmusic View Post
i know what tax is for im asking WHY is the app store is taxed and not the android one. why the difference ? just curious

haha im not used to paying tax because

Amazon
Some states are starting to pass laws taxing online sales. Retailers such as Walmart are rightly pissed that they get punished for having an actual store. But laws have to get passed to do it since its still uncharted territory.

As for why the App Store is and Amazon isn't, that's strange. Must be a quirk of the local law. Maybe it has something to do with Apple having physical stores and Amazon not.
__________________
13.3" 2014 MacBook Air; Mid-2010 21.5" iMac; silver 64GB iPhone 6; white iPad Air 32 GB; third-gen TV (x2)
Michael CM1 is offline   1 Reply With Quote
Old Dec 27, 2012, 05:26 PM   #22
jazzbo
macrumors member
 
Join Date: Oct 2008
Location: Bangor, ME
Quote:
Originally Posted by darster View Post
Incorrect. I live in a state where Apple has no presence, but they add a sales tax on every purchase. Apple chooses to apply the state sales tax for every state that has one. Google and amazon choose not too. Honestly, I think they should. The money is used by your state to fund education, road work, snow removal and so on. I live in a state with no income tax, and the sales tax is what funds these projects.
Are you sure Apple doesn't have a presence? Very often their educational contracts -- i.e. having a dedicated store at a university or a depot for a local school district, often will be enough to make the nexus.

Or is that some statement somewhere that says that Apple collects for every state, just because. I have heard of no retailer doing that voluntarily and I'm very surprised that Apple would. I really think it is because Apple has a bigger presence that many of us realize. Why don't they collect local taxes on top of that -- and stop at just the state level?
jazzbo is offline   1 Reply With Quote
Old Dec 27, 2012, 05:33 PM   #23
From A Buick 8
macrumors 68030
 
From A Buick 8's Avatar
 
Join Date: Sep 2010
Location: Ky Close to CinCinnati
Quote:
Originally Posted by isephmusic View Post
are you kidding me ? in google play you pay 99 cents its NINTY-NINE cents not a dollar+.06, what does that even accomplish. so if you pay a 25$ app like the big cloud/ office apps will it charge you that extra 7% tax ? thats kind of rediculous who does it go to and why does android not require it but iOS does ?
what state you in op
__________________
Homemade Interocitor, iPhone 6 Plus 128gb Silver, iPad 4, Two Apple TV's, -- 21.5-inch: 3.2GHz Intel Core i3 iMac.
From A Buick 8 is offline   0 Reply With Quote
Old Dec 27, 2012, 05:44 PM   #24
thekev
macrumors 603
 
thekev's Avatar
 
Join Date: Aug 2010
Quote:
Originally Posted by isephmusic View Post
i know what tax is for im asking WHY is the app store is taxed and not the android one. why the difference ? just curious

haha im not used to paying tax because

Amazon
That's an unusual area. Online retailers still have to charge sales tax if they have a physical presence in your state. If they lack one, you're technically still liable for applicable "use tax" which is the same amount as you would have paid in sales tax. Generally in countries where sales tax is applied at a national level, the stated price is sales tax inclusive. Sometimes they still price things to the nearest .99, and when you look at your receipt you'll see how much was sales tax. The odd thing about apps is that in some cases with certain states, non-tangible items are not considered sales taxable assuming they aren't accompanied by tangibles. It's a weird mix and this varies according to the laws of your state of residence and where the seller is set up. In the end retailers aren't going to charge you sales tax unless they feel it is required, and they do not profit from it. If anything it's an added expenses accounting for it.
__________________
world's largest manufacturer of tin foil hats, none of that aluminum foil crap.
thekev is offline   1 Reply With Quote
Old Dec 27, 2012, 09:18 PM   #25
darster
macrumors 68000
 
Join Date: Aug 2011
Quote:
Originally Posted by jazzbo View Post
Are you sure Apple doesn't have a presence? Very often their educational contracts -- i.e. having a dedicated store at a university or a depot for a local school district, often will be enough to make the nexus.

Or is that some statement somewhere that says that Apple collects for every state, just because. I have heard of no retailer doing that voluntarily and I'm very surprised that Apple would. I really think it is because Apple has a bigger presence that many of us realize. Why don't they collect local taxes on top of that -- and stop at just the state level?
They have been collecting sales tax since I can remember. I live in South Dakota. The only presence Apple has here is best Buy. lol
darster is offline   1 Reply With Quote

Reply
MacRumors Forums > Apple Applications > iPhone and iPod touch Apps

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Similar Threads
thread Thread Starter Forum Replies Last Post
Apple Paid $6 Billion in Federal Income Tax in 2012, 1/40 of All U.S. Corporate Income Tax Collected MacRumors Politics, Religion, Social Issues 367 Feb 6, 2013 02:21 PM
Apple is example of broken system: Low tax only work if tax-investment cycle operates katewes Politics, Religion, Social Issues 8 Dec 31, 2012 01:15 AM

Forum Jump

All times are GMT -5. The time now is 11:30 PM.

Mac Rumors | Mac | iPhone | iPhone Game Reviews | iPhone Apps

Mobile Version | Fixed | Fluid | Fluid HD
Copyright 2002-2013, MacRumors.com, LLC