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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4190
Experience:  FCCA FCMA CGMA ACIS
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Hello, I am a sole trader not registered for VAT and I would

Customer Question

Hello,
I am a sole trader not registered for VAT and I would like to sell apps via the Apple App Store.
The Apple App Store acts as an agent resulting in the B2B transaction between me and the Apple app store. Apple App store than does a B2C transaction to deliver the application to the end user. From 1.1.2015 Apple App Store will charge the VAT based on the EU country the user is from.
Is it compulsory for me to register for the VAT in order to sell the apps? I am expecting to have a year turnover less than £81,000.
Regards,
Kamil
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.

Hello Kamil, I'm Keith and happy to help you with your question.

There is no requirement to register for VAT if your turnover is below 81K per annum. The result of Apple's actions will be that the buyer will pay a higher price for your products than was previously the case and this may affect your turnover. Of course, if the ultimate customer is registered for VAT or its equivalent in their own country they will be able to reclaim the output tax imposed by Apple as input tax in their accounts. I assume that Apple is not passing the VAT charged back to you when they pay you for your distance sales.

To be absolutely sure you could run the scenario past HMRC, their phone number is *****(###) ###-####and the relevant web site is:

http://search2.hmrc.gov.uk/kb5/hmrc/contactus/view.page?record=dMVkEC6liWE

I do hope I have been able to set your mind at rest over this matter.

bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 3 years ago.
Thank you for your support.