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stovinh avatar image
stovinh asked

Why are prices shown on the device not the same as in the store setup?

Hi I am not sure if I have posted this in the right place. If not, please advise where I should raise this. We have set up a couple of apps with in-app purchases. The apps have not yet been submitted. We encountered a problem when trying to do end-to-end testing of the in-app purchases. Both apps have similar in-app purchases, and for both we have entered the base prices for these as: Single issue purchase/entitlement: £7.07 excluding UK VAT (which should come to £8.49 when including UK VAT) Three-month subscription: £41.66 excluding VAT (£49.99 with VAT) Six-month subscription: £83.32 excluding VAT (£99.99 with VAT) However, when we test purchasing any of these through the device the displayed price does not reflect the prices set in the store setup, either with or without VAT. For the single issue entitlements it is being displayed as £10.82. For the three-month subscription it is displayed on the device as £63.74 and for the six-month subscription it is displayed as £127.48. Can anybody advise what might be going on? Have we done something wroig in the setup?
iap
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Levon@Amazon answered
Hello, What you are seeing is not related to VAT, but to those values being displayed in US dollars during testing. So it's a case of seeing different currencies (in this case GBP and USD). For example, the Single issue purchase/entitlement of 7.07 (GBP) is displayed in US dollars during IAP testing, and renders as 10.82 (USD). Please let us know if you have any further questions. Kind regards, Levon
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stovinh answered
Thanks Levon Now that you point it out I can see that the price is being displayed in USD. However, £7.07 / $10.82 is the base price without UK VAT added. In the store setup, on the page where one sets the price for in-app purchases ( https://developer.amazon.com/iap/entitlement/availability/M12SK8H0WAPWMI/edit.html), your instructions say: "The list prices for each marketplace should be your suggested price, not including any VAT or similar taxes. Taxes are included in the final price to end users. These taxes are deducted from the list price when calculating Royalties." So logically it should be displaying to the end user £8.49 / $12.81. Is this a bug? Or are your instructions wrong and we should be entering the full price with VAT?? Thanks Stovin
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Levon@Amazon answered
Hi Stovin, That's not a bug: both you and the end user see the prices correctly. As per guidelines, you should not really add extra for taxes. VAT is included in the price of your app or IAP item. So, when you set your price on your app or IAP item during submission (under the “Availability & Pricing” tab), the list price is inclusive of VAT. Therefore, when you enter your app’s or IAP item's price, you should not add extra to cover VAT. For Example: Assuming a 15% VAT, if you would like your customers to pay 2.99 EUR for your app, you should simply enter in 2.99 EUR for the price of your app, not 3.44 EUR (list price + 15%). These taxes are deducted from the list price when calculating royalties. I hope that answers your question, but please let us know if you have any other ones. Kind regards, Levon
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