3 ms·

When an iPad is sold in Germany, does Apple pay VAT in Germany or in Ireland? (Serious question. I don't live in the EU.)

dageshi 10y ago
If it's sold by anyone inside the EU either physically or online Germany receives VAT at the German VAT rate.
raverbashing 10y ago
Germany
tankenmate 10y ago
I'm fairly certain this is a case about corporate income tax (tax on profits) not VAT (tax on sales).
matt4077 10y ago
It depends. If they sell it to a business they don't pay VAT at all. For sales to consumers they would now pay the customer's country , I believe that just changed about a year ago. Amazon and Luxembourg may or may not have been responsible for that change :)
- occamrazor 10y ago
  To be precise, the Luxembourg loophole was in force only for digital goods.
  - matt4077 10y ago
    Really? I seem to remember that they paid VAT to Luxembourg, but had made a pretty good deal with the authorities that reduced their effective VAT rate to below 1%.
    - occamrazor 10y ago
      I think it applied only to Prime and to mp3's, at least after 2008 or so. This was also the reason why Skype, eBay and others had their European HQ in Luxembourg. OTOH books had reduced VAT in most countries.
jusssi 10y ago
Others have answered your question correctly. I'd like to add that Apple doesn't pay VAT, the consumer does. It's just Apple's responsibility to collect the VAT from the consumer and forward it to the tax authority.
doikor 10y ago
Apple doesn't pay the VAT the consumer does. That is why Apple products costs roughly 30% (24% VAT + some extra due to fucking up the dollar to euro conversion) more in Finland when compared to US even though they ship directly from a factory in China.
- jdmichal 10y ago
  Yes, the consumer technically pays the tax. However, Apple acts as the collector of the tax from the consumer, and is responsible for "passing it on" to the appropriate tax authority. So, the reform the asked question: What tax authority does Apple report and pay the taxes to? And the answer is that the EU regulations state that VAT taxes are to be paid in the country in which the transaction takes place. If the transaction is online (and potentially therefore spanning multiple countries), the customer's location is used as the place of transaction.
- Retric 10y ago
  Sure, there is a separate line item on the bill, but if Apple collects the wrong amount they are on the hook to pay the correct amount not the consumer.

dageshi 10y ago

If it's sold by anyone inside the EU either physically or online Germany receives VAT at the German VAT rate.

raverbashing 10y ago

Germany

tankenmate 10y ago

I'm fairly certain this is a case about corporate income tax (tax on profits) not VAT (tax on sales).

matt4077 10y ago

It depends. If they sell it to a business they don't pay VAT at all. For sales to consumers they would now pay the customer's country , I believe that just changed about a year ago. Amazon and Luxembourg may or may not have been responsible for that change :)

occamrazor 10y ago
To be precise, the Luxembourg loophole was in force only for digital goods.
- matt4077 10y ago
  Really? I seem to remember that they paid VAT to Luxembourg, but had made a pretty good deal with the authorities that reduced their effective VAT rate to below 1%.
  - occamrazor 10y ago
    I think it applied only to Prime and to mp3's, at least after 2008 or so. This was also the reason why Skype, eBay and others had their European HQ in Luxembourg. OTOH books had reduced VAT in most countries.

jusssi 10y ago

Others have answered your question correctly. I'd like to add that Apple doesn't pay VAT, the consumer does. It's just Apple's responsibility to collect the VAT from the consumer and forward it to the tax authority.

doikor 10y ago

Apple doesn't pay the VAT the consumer does. That is why Apple products costs roughly 30% (24% VAT + some extra due to fucking up the dollar to euro conversion) more in Finland when compared to US even though they ship directly from a factory in China.

jdmichal 10y ago
Yes, the consumer technically pays the tax. However, Apple acts as the collector of the tax from the consumer, and is responsible for "passing it on" to the appropriate tax authority. So, the reform the asked question: What tax authority does Apple report and pay the taxes to? And the answer is that the EU regulations state that VAT taxes are to be paid in the country in which the transaction takes place. If the transaction is online (and potentially therefore spanning multiple countries), the customer's location is used as the place of transaction.
Retric 10y ago
Sure, there is a separate line item on the bill, but if Apple collects the wrong amount they are on the hook to pay the correct amount not the consumer.