UK Tax Questions? Ask a UK Tax Advisor for answers ASAP
I am an app developer based in the UK. I will be looking to sell my app on both Apple and Android markets. The android market structure is such that, I as the app developer am the seller of the app, to the purchasers of the app who may live abroad (both Europe and globally). As a UK resident and a business incorporated in the UK, do I have an obligation to pay VAT/Sales tax to the tax collection authority of the country, in which my app is sold?
For more detail please see below links:
(Does this link imply that, no VAT has to be paid for sales through the Apple store?)
Many thanks for your help in advance.
Please see the below link.
It is of a company that provides a similar service (Electronic services) has made a distinction, between:
- Selling in UK (20% VAT)
- Selling in Europe (20% VAT)
- Selling in the rest of the world (0% VAT)
- Selling in Norway/Iceland (Local VAT rates)
Could you please confirm that the tax rates in the bracket are correct for each region in the above?
Anything else I need to consider?
Many thanks for your help
Okay thanks for the guidance on this. It is upon this advice, I will charge 20% VAT on app sold in UK, but no where else.
However, I am not sure if you received the previous message, but is it possible for you to comment on the below E&Y document on VAT rates, which on page 330, speaks of Iceland's rules on electronic services?
I just want to be 100% sure that the above position (in the case of Iceland) does not affect me at all.
With respect, what Iceland does is an irrelevance. Iceland is outside the EU and thus supplies to that area are zero rated. Were it in the EU it would still be zero rated as I explained earlier. You are not affected at all.
Okay thanks very much Keith