Surprise! Digital Content May Actually Cost Less After U.K. Tax Change

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  • dcj001

    “In reality, Apple is likely to leave them as they are and pocket the difference”

    This conclusion makes no sense. Legally, companies must forward whatever taxes that they collect to the respective governments.

    • Killian Bell

      What I mean is, Apple can continue to charge £0.99p a song (as an example), then pay 20% VAT as opposed to 23% VAT and hold onto the other 3% for itself. So rather than passing the saving onto the customer, it just makes more profit.

  • Kravex

    “such as Luxembourg, where it’s just 15% — so that they could charge less. But Apple didn’t.”

    Yes they did:

    http://www.accountingweb.co.uk/anyanswers/itunes-and-vat/501517

    “I have now obtained VAT invoices from Apple for all purchases and it turns out that they are based in Luxembourg, so the VAT is not UK VAT in any case.”