What percent of the money my apps make will I receive

[Thaiscorpion]

Hi!

Just wondering if anyone could help me, I´ve never sold an app yet but plan to do so soon and was investigating what percent of each sale would I receive?

Say I sold the app for 1€ (Im living in spain) after apples fee is the rest mine? how do I get taxed after that? how much tax is it? do I have to pay any type of comisions for transfering the money to my account? If anyone has experience with this and could help me out that would be great thanks!

-Jordan

 

[Bilalo]

Hi!

Just wondering if anyone could help me, I´ve never sold an app yet but plan to do so soon and was investigating what percent of each sale would I receive?

Say I sold the app for 1€ (Im living in spain) after apples fee is the rest mine? how do I get taxed after that? how much tax is it? do I have to pay any type of comisions for transfering the money to my account? If anyone has experience with this and could help me out that would be great thanks!

-Jordan

You get 70%, apple gets 30% so you'd get 0.70€, if you place adds in your app and people download it from your app then you get something from that as well, I doubt there being taxes, maybe normal income tax, but royalties dont count I think. Dont forget adding an app to the apple app store cost $100 per app per year if im not wrong which is why you could find more free android apps as it only cost $40 to put it on there and its a one time payment + easier making since they use java.

 

[charlieegan3]

as the post above states it's a 70/30 cut, you could have got that from google.

 

[Sixtafoua]

Dont forget adding an app to the apple app store cost $100 per app per year if im not wrong which is why you could find more free android apps as it only cost $40 to put it on there and its a one time payment + easier making since they use java.

It costs $100 a year to obtain a developer license, but with that license, i believe you may upload as many apps as you'd like to the app store.

 

[Bilalo]

I believe it costs $100 a year to obtain a developer license, but with that license, you may upload as many apps as you'd like to the app store.

No, its that + paying like $40-$60 for each app a year or something as apple checks all the apps before they go on the app store unlike android store.

 

[ericrwalker]

as the post above states it's a 70/30 cut, you could have got that from google.

Or ChaCha

 

[Thaiscorpion]

Thanks everyone for the replies! So the question that still remains for me is out of that 70% after normal tax (20% in spain) that leaves me with a 54% gain on each app, is that correct? Just checking how much I will have to plan out my marketing scheme

 

[ericrwalker]

Thanks everyone for the replies! So the question that still remains for me is out of that 70% after normal tax (20% in spain) that leaves me with a 54% gain on each app, is that correct? Just checking how much I will have to plan out my marketing scheme

If you sell an app and you get 70% minus 20%, that would be 56% of the total cost of the app that is profit to you. Minus your yearly charge from Apple too.

What do you need to plan? Do you know how many copies you are going to sell?

 

[gnasher729]

Thanks everyone for the replies! So the question that still remains for me is out of that 70% after normal tax (20% in spain) that leaves me with a 54% gain on each app, is that correct? Just checking how much I will have to plan out my marketing scheme

What "normal tax" are you talking about? If you are talking about VAT, VAT is _added_ to the price, so to remove 20% VAT, you divide 70% by 1.20, leaving 58.3%. On the other hand, any VAT that your business pays is deducted from the VAT that you earn. And check with your local tax office what the rules are for VAT and (presumably) very small businesses; things might be considerably more favorable for you.

Then of course you'll have to pay income tax, but then you can deduct the cost of running your business from your income.

 

[ericrwalker]

I think it would be 56%.....you wouldn't pay the 20% on top of the total cost of the app, but on the 70% of the money Apple pays out to you. So you'd take the 70%, then minus 20% from that.

What "normal tax" are you talking about? If you are talking about VAT, VAT is _added_ to the price, so to remove 20% VAT, you divide 70% by 1.20, leaving 58.3%. On the other hand, any VAT that your business pays is deducted from the VAT that you earn. And check with your local tax office what the rules are for VAT and (presumably) very small businesses; things might be considerably more favorable for you.

Then of course you'll have to pay income tax, but then you can deduct the cost of running your business from your income.

 

[gnasher729]

I think it would be 56%.....you wouldn't pay the 20% on top of the total cost of the app, but on the 70% of the money Apple pays out to you. So you'd take the 70%, then minus 20% from that.

Think about it: If an item costs €100 excluding tax, and you have a VAT rate of 20%, then the customer pays €100 + 20% = €120. To get back from €120 to €100, you divide by 1.20.

56 + 20% would be only 56 + 11.20 = 67.20.
58.33 + 20% = 58.33 + 11.6666 = 70.

 

[ericrwalker]

Think about it: If an item costs €100 excluding tax, and you have a VAT rate of 20%, then the customer pays €100 + 20% = €120. To get back from €120 to €100, you divide by 1.20.

56 + 20% would be only 56 + 11.20 = 67.20.
58.33 + 20% = 58.33 + 11.6666 = 70.

I don't know exactly who pays VAT is that paid by everyone on every sale and on all income? Maybe that's where we are seeing a difference. I thought the OP was saying he has to pay 20% on all earnings. When Apple collects tax on an app, does 70% of that tax get passed on to the person who created the app, then he pays taxes on that. I thought if anything he would receive his 70% cut without taxes withheld and most likely (in the USA anyway) be reported as 1099 income.