70% cut received from Euro countries not really 70%?

Discussion in 'iPhone/iPad Programming' started by jsnuff1, Feb 19, 2009.

  1. macrumors 6502

    Joined:
    Oct 4, 2003
    Location:
    NY
    #1
    I just found a weird discrepancy in my reports. It seems that apple is paying us less than 70% for Euro payments.

    For example, 1.99 USD apps sell for 1.59 EUR in Euro currency countries.

    In my reports the royalties received for this price bracket is .97 EUR

    Correct me if my math is wrong but 70% of 1.59 is 1.11

    If this is true that means Apple is taking .14 EUR extra from us (which converts to about .18 USD per app)

    This is quite disturbing if its true, and why would they be taking more money from Euro payments?

    Anyone have some insight on this?
     
  2. Guest

    caveman_uk

    Joined:
    Feb 17, 2003
    Location:
    Hitchin, Herts, UK
    #2
    Sales Tax?
     
  3. thread starter macrumors 6502

    Joined:
    Oct 4, 2003
    Location:
    NY
    #3
    any sales tax would be charged over the sale price (same way its done here, 1.99 app really costs the customer 2 something)

    so that does not explain it.
     
  4. macrumors 68040

    Joined:
    Apr 22, 2005
    #4
    Stores in European Union member countries have the VAT included in the sale price, so the 1.59 includes tax, unlike the U.S. store.
     
  5. macrumors 603

    Joined:
    Jul 29, 2003
    Location:
    Silicon Valley
    #5
    So what are the VAT rates in the major EU iTunes market countries?
     
  6. macrumors 68040

    Joined:
    Apr 22, 2005
    #6
    It's around 15%.

    This makes perfect sense in the OP's example:

    1.59 EUR / 1.15 = 1.38 EUR price before VAT

    1.38 EUR x 0.7 = .97 EUR royalties per unit
     
  7. Guest

    caveman_uk

    Joined:
    Feb 17, 2003
    Location:
    Hitchin, Herts, UK
    #7
    I'm not sure that Apple charges individual VAT rates for each country in the EU. Seeing as how they are based in Luxembourg they probably use theirs - 15%. Which is lucky as it's the lowest rate in the EU (along with the UK's - temporarily).
     

Share This Page