4 Replies Latest reply: Mar 6, 2013 12:39 PM by Andres_Mendoza
Armenian Publisher Level 1 (0 points)

Dear Apple Community,

 

Our Company, registered in The Republic of Armenia, is planning to sale

electronic books via iTunes Apple Store (iBookstore).

 

We want to understand Apple fees/commissions and US Taxes

 

1. For example, If we put an ebook for sale via ibookstore for $2.99, and

will sale 1 ebook, how much money will we get to our bank account ($2.99 or

less) ?

2. If less, what will be included in the withheld amount (Apple commission

and/or US Taxes) ?

3. Whether Apple Corp. will be our Tax Agent and will have obligation to

withhold tax amount from our income or we should declare and pay all taxes

by ourselves?

  • Armenian Publisher Level 1 (0 points)

    Dear Apple Community,

     

    The questions are still without answers. So I am formulating them in another way:

     

    Our Company, registered in The Republic of Armenia, is planning to sale electronic books via iTunes Apple Store (iBookstore).

     

    We have read all the following links many times, but didn't find answers to the questions that we have.

    http://www.apple.com/itunes/content-providers/book-faq.html

    http://www.apple.com/itunes/content-providers/

    http://www.apple.com/itunes/sellcontent/

    https://itunesconnect.apple.com/WebObjects/iTunesConnect.woa/wa/bookSignup

    http://support.apple.com/kb/HT5071

    http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/How-to-Apply-for- an-EIN

     

     

     

    We would like to know the following information about the Apple Fees, US Taxes, US Tax Returns, and bank transaction fees:

     


    1.       Apple fees

     

    As I understood, Apple takes 30% from sales.

     

    Example: When a book is sold for (let’s say) 10$, 30% of the amount (i.e. 3$) is Apple’s part, the rest 70% (i.e.) 7$ is my part.

     


    2.       US Taxes

     

    Case A: There are US Taxes for me from the sales. Continuing the previous example, Apple is considered as my Tax Agent and pays my Taxes from its 3$.

     

    Case B: There are US Taxes for me from the sales. Continuing the previous example, Apple is considered as my Tax Agent and pays my Taxes from my 7$.

     

    Case C: There are US Taxes for me from the sales. Continuing the previous example, Apple is NOT considered as my Tax Agent, and I pay my Taxes from my 7$.

     

    Case D: There are NO US Taxes for me from the sales.

     


    3.       US Tax Returns

     

    Case E. There is need to file US Tax Returns, and Apple files them for me.

     

    Case F. There is need to file US Tax Returns, and I file them by myself.

     

    Case G. There is NO need to file any US Tax Returns.

     


    4.       Bank Transaction Fees

     

    Case H. Apple pays bank transaction fees and I get the whole available after-sale amount at my bank account.

     

    Case I.  I get the available after-sale amount less bank transaction fees.

     

    Case F. There are NO bank transaction fees.

     


    We would like to know which of the mentioned cases are the right ones.

     

    P.S. Please take into consideration that our company is NOT US resident for purposes of Taxation. Also we know how to get US Tax ID.

  • Armenian Publisher Level 1 (0 points)

    I will add another Case A.1. in paragraph 2. US Taxes:

     

    Case A.1.: There are US Taxes for me from the sales. Continuing the previous example, Apple is considered as my Tax Agent, adds the Taxes to the 10$ price, charges 10$+tax from buyers, and pays my Taxes from the added amount.

  • Tom Gewecke Level 9 (77,195 points)

    You really need to consult tax experts this, but I think that what happens is that (unless there is a bilateral treaty between the US and Armenia that says otherwise), Apple withholds 30% of the payments going to you after its own 30% commission and sends those to the IRS.

     

    As nobody in these forums represents Apple, there may be no way to get the kind of answers you want by asking here.  Here are some ways you could try to contact Apple directly:

     

    ebookquery@apple.com

     

    ibookstore@apple.com

  • Andres_Mendoza Level 1 (0 points)

    Hello Armenian Publisher!

     

    Have you solved this matter?

    I've been working around the same issue; you can send me an email to andres.mendoza.o@gmail.com

     

    Hope we could figure it out and let it know to the whole community!

     

    Best regards,

    AM