VAT is handled depending your country and the contry of the invoice and your kind of business. It is best you ask a professional about how it apply in your case.
If you get invoices without VAT, most likely because VAT has not to be applied in your case, or you have to do something on your own about it.
Again, about any tax issue in your country, it is best you ask a professional.
I contacted Apple. From their reply:
"the iTunes Store sells only to customers as end-users for personal, noncommercial use in their respective countries of residence. For more information, you can review the iTunes Store Terms and Conditions"
Now, on this page http://www.apple.com/iphone/business/ it says, among other things:
"Apps for every business.
There are thousands of third-party iPhone apps designed to make your business more productive. You can manage your sales pipeline, tap into your accounting system, or even attend a web conference via iPhone.
And with iOS 4,you can organize your Home screen with folders that you find and launch your favorite apps with just a couple of taps. With so many tools to choose from, iPhone makes it easy to get work done anywhere."
Do you get those apps for every business somewhere other than the iTunes Store?
I've encountered the same problem - being told apps are for non commercial use - personal only etc. I have an Apple ID - which I use when I purchase products via their online buisness store - which asks for my VAT number. I use a Macbook Pro for buisness, recently uppgraded to Mountain Lion via the App Store - as encouraged by Apple. However have been told that this is for personal use not commercial?????
However with the move to iPad (I use for buiness), iPhone (I use for business) and increasingly Mac App store (I use for business) it seems Apple T&Cs suggest that these are not allowed to be used for business in the UK !!!!!!!!!!!!!!!!!! Exactly how am I suppose to run a business on kit sold to me for business if I cannaot run software on it?
I'm not trying to play the system - simply buy/license software for use on my various Apple kit and correctly record it in my accounts as required by HMRC tax/VAT. But how are you supposed to legimitley purchase apps for use in business on your iphone, ipad and mac (now virtually everything goes through the app store?
I've looking for that for weeks with no avail.
In the EU, when selling to non companies, you apply the VAT rate of the country you're selling from. It's interesting to note that in some countries, a legal receipt is needed after the purchase for the local IRS.
So even for normal customers, missing legal receipts in the EU can be a problem.
If you're a company, even a freelancer, when you buy things for your work, you need detailed information about VAT. First because you will remove the amount without VAT from your earnings, and second because that VAT will be returned to you or balanced with the VAT your business owe.
In case you buy inside EU countries. For example your company is in the UK and you get an invoice from Luxemburg. The price shouldn't include VAT (Because it will be a pain in the *** to get it back from the Luxemburg tax authorities, but also by law).
For a simple app it might not make sense, but if you spend serious amounts of money in apps for your business it would be nice to do it right.
- Having the right information in the invoice.
- Charging VAT when it's needed.
Amazon does it. And even exposes some limits to this. That is clear information right from your account dashboard.
Why Apple is so secretive? I don't know.
My recommendation is that you try to buy from the author if possible till they clear these things.
I have been batteling bwith thois for weeks too.I am a UK accountant and buy software / apps etc on itunes, and should be able to claim VAT back. However itunes say I an only charged Luxembourg VAT (where they are based).
It is virtually impossible to claimn VAT for a foreign country, unless the amount is significant, as the costs of doing so is too high.
If you have a VAT registration number (I Have) and give it to itunes to verify, thay should not charge VAT to me on my account. I have exactly this arrangement with Skype.
itunes are refusing to play ball, simply batting back to me saying get it from Luxembourg!
Unfair, and not very client focussed.
I will be persuing this with them and the UK VAT authorities, and will post my finding here.
Like many big companies, they now believe they have enough customer weight to do what they want...so did woolworths and HMV!
By the way - if you are based in Luxembourg , and VAT registered there, no problem. Claim the VAT back easily! Good for them.
Accountants for justice
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What a con. Why if these people have paid vat and run a legit business can't they reclaim their vat? If you sell to a business to use the products for business as you have advertised, then they should be able to reclaim the vat. If it hasn't been charged then that's different however if they have then you should be supplying them
With a vat invoice which they can then reclaim.