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

[jsnuff1]

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?

 

[caveman_uk]

Sales Tax?

 

[jsnuff1]

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.

 

[admanimal]

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.

 

[firewood]

So what are the VAT rates in the major EU iTunes market countries?

 

[admanimal]

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

 

[caveman_uk]

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).