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multichrome avatar image
multichrome asked

Gross Revenue / VAT

Hello all, Does anybody know how the calculation of the gross revenue works? My app has a list price of 12,80 EURO the gross revenue on the sales report is 11.13 EURO. So obviously they subtracted 15% VAT. I m located in Germany where we have 19% VAT. My customers are also located in Germany. I need to report my sales to our tax authority and I can hardly tell them that I decided to only pay 15% VAT! Also, the Appstore App does not show the VAT to the customer! I dont know the laws in the US, but in Germany this is completely illegal !! If would be happy, if another developer from germany could tell me how to fix this soon! Otherwise I have to withdraw my app! Thanks!
amazon appstore
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Anshul@Amazon avatar image
Anshul@Amazon answered
We have an extensive FAQ on payments and taxes. Please refer to our FAQ available at https://developer.amazon.com/help/faq.html#SalesPaymentTax for all your queries related to payments and taxes. In-case you have any further queries on taxes, please raise a ContactUs ( https://developer.amazon.com/help/contactus.html) and one of our support engineer will be able to help you in resolving your query.
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multichrome avatar image
multichrome answered
I already wrote an eMail! I m still waiting for an answer! Ok the questions are: 1) Why does Amazon keep a VAT of 15% for countries where the VAT is 19%? 2) Because Amazon subtracts the VAT from the list prices, Amazon also has to pay it to the tax authorities in each country. Now how will you pay 19% VAT in Germany when you only keep 15%? 3) How do you think I can explain that mess to my tax authority? I didnt find an answer for any of the above questions in your FAQ! It would be nice to have an exact description of such an important process! Thanks!
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Anshul@Amazon answered
Thank you for your post Andreas. We have received your ConatctUs and its been actively worked on as well.
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multichrome avatar image
multichrome answered
Thanks! I really hope I can solve all my issues and stay here with my app!
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Edizioni Cond�� Nast avatar image
Edizioni Cond�� Nast answered
Hi, did you receive any feedback from Amazon about this issue? I have the same problem in Italy - already wrote an email.
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Sujoy@Amazon answered
Hi Edizioni, We have received your ContactUs and replied. Thanks for posting.
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alex cuff avatar image
alex cuff answered
Since this is a important issue which the support pages do not explain this should be surely shared with all developers on support pages rather than hid away.
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Sujoy@Amazon answered
Hi Alex, For any Amazon Marketplace in which we display purchase prices inclusive of VAT or similar taxes, the list price is inclusive of those taxes. However, you will be paid a royalty calculated using the list price exclusive of those taxes. For example, if the list price for your app in an Amazon Marketplace is 1.15 Euro and that Amazon Marketplace displays prices to customers “ inclusive of 15% VAT,” the list price used for the calculation of the royalty is 1.00 Euro. Thank you for posting.
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danieldiazi avatar image
danieldiazi answered
I'm interesting how configure VAT too. I'm from spain and I need to configure 21% of VAT for European Union, and 0% for other countries, like I do at Google Play plataform.
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Amazon Customer avatar image
Amazon Customer answered
Hello, I've started selling apps on Amazon App Store (I love the whole thing), and I've finally reached the payment threshold. However, I wasn't aware, that Amazon takes away taxes. Can you please verify that I understand this correctly: My apps are sold for 0.99 USD. Amazon keeps 30% which leaves me with 0.69 USD Since I'm from Slovenia, another 30% is taken away for US taxes - my nett earning is 0.48 USD I also need to pay taxes is Slovenia (now 22%) - so another 22% is taken away from 0.48 USD? This would leave me with 0.37 USD per sale or 0.27 EUR. The closest explanation as to why 30% is taken away for taxes (in my case) is this: https://kdp.amazon.com/self-publishing/help?topicId=201274690 [b] My questions are: [/b] 1) Is my understanding of the whole process correct? 2) I'm a citizen of Slovenia (EU) and if I open a business bank account in Austria (EU), will I be eligible for only a 10% tax reduction? Thank you very much. EDIT: I've also sent the question to the support team. Message was edited by: lemming2040
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