What exactly do you "earn" when selling iBooks

You're using a term I've used and insisted on in the past (I'm specifically trying to avoid using it in this case at the risk of misleading the OP), only to receive pushback from individuals living in the EU, that it did not apply. You can use it if you wish, but be prepared to talk it out with the OP, not me.

Let's let the OP explain their own thinking, thanks 🙂 - Forums are cryptic enuf... I'll be sure to ask if I need you to translate, tho. Feel free to reply to them if you like. I'm certain I understand the question....it's not the first time it's surfaced.

Ciao Livia, these would be classified as royalties, and subject to self-employment income tax in the U.S. if you were a resident. I'm not sure what your status is in Italy with your partita IVA or other income, but I believe you can declare this as "diritti d'autore" which is subject to a flat 20% tax rate.

Apple takes 30% - you get 70% ...of whatever the price listed for your book is in the store.

Sales Reports are available for daily/weekly estimated sales. Monthy reports equal the payout to you monthly. Those reports are online via a login to a site called iTunes Connect.

See iBooks Author: Publishing and distribution FAQ - Support

It's called 'profit'. From a sale. You're not working for anyone but yourself. Apple makes a payment of your portion of each sale directly to your, after taking out their percentage.

For your accounting, as I said, you can download and view sales reports via iTunes Connect. Apple doesn't send out any other reports or documentation.

You need to track payments made to you, from Apple, by reviewing your bank records to see each month's electronic wire transfer/deposit activity into the designated bank account.

I can't speak to VAT, sorry, I'm in the US.

I think that what LIviaCH is asking is whether or not the profit is classed as royalties. I don't know the answer to that (haven't gotten that far yet), but it can have certain tax implications, depending on whether or not it is.

Okay, fine. Sorry to interfere.

I used the term "author's fee" but it could also be that it's called "royalties"... I'm not native english speaking...

Yes, the official term for this in the US is "royalties". That is what the IRS calls it on all their documents, for all that KT objects to the term. From the instructions for form 1099-misc, used to report royalty payments.

Box 2. Royalties

Enter gross royalty payments (or similar amounts) of $10 or more. Report royalties from oil, gas, or other mineral properties before reduction for severance and other taxes that may have been withheld and paid. Do not include surface royalties. They should be reported in box 1. Do not report oil or gas payments for a working interest in box 2; report payments for working interests in box 7. Do not report timber royalties made under a pay-as-cut contract; report these timber royalties on Form 1099-S, Proceeds From Real Estate Transactions.

Use box 2 to report royalty payments from intangible property such as patents, copyrights, trade names, and trademarks. Report the gross royalties (before reduction for fees, commissions, or expenses) paid by a publisher directly to an author or literary agent, unless the agent is a corporation. The literary agent (whether or not a corporation) that receives the royalty payment on behalf of the author must report the gross amount of royalty payments to the author on Form 1099-MISC whether or not the publisher reported the payment to the agent on its Form 1099-MISC.

However, I don't think that when you are the one with the itunes connect account that your relationship with apple is that of an author receiving royalties. You are the publisher in this instance. For example, my own publisher makes my books available in the ibookstore, but they pay me royalties on those copies. Apple does not pay them royalties but rather sales income. But your best bet is try again to get an official response from apple on this point.

OP is short for "original poster", in other words the person who started a thread.

>That is what the IRS calls it on all their documents, for all that KT objects to the term.

I didn't say that. Please learn to participate without side comments on what you think others say. If you want to know what I meant, start your own thread and ask. Stop commenting for the IRS and for me....second request I believe.

Forums are user-to-user :)

I too am trying to figure this out. Based on the User Agreement, sales of of your books are direct sales of goods to an end user. Apple takes a commission on these sales. They are therefore not required to, and will not send you a 1099.

However, this leaves the questions for tax purposes:

-does one list these sales as Royalties, or one can't because it is simply the sale of goods? (I suppose if you are the author and publisher, Apple pays you as the publisher for the "goods," and then you forward on "royalties" to yourself as the author!)

-if one wishes to list the commissions paid to (automatically taken by) Apple on one's tax forms and gain the tax benefits, do they need to send Apple a 1099? I highly doubt Apple will provide you with a W9 or whatever a corp. would provide, so can this even be considered? Or does the author simply loose out on the tax benefits of paying a commission to Apple?

Clarification - one does not need to send a 1099 to a corporation, so it seems one may be able to enter the commissions as expenses, but it would be wise to consult a tax expert on this.