VAT coming to apps and digital downloads :(

MrMoonX · 23 Mar 2014 at 20:26

http://www.macrumors.com/2014/03/23/app-store-um-price-increase/

The latest shaft from the government came in the budget which from 1st Jan 2015 means google, apple, amazon etc. can no longer avoid VAT which means all our apps etc are gonna go up 20% next year

Thanks Gideon

Glaucus · 23 Mar 2014 at 20:28

Or by 5% as they currently pay 15 tax to another country.
This is a good and sensible move.
What's there to complain about.

Apps may be least affected as they are presently taxed at the higher range of 15%.

So rather than a tax loop, where they pay Luxembourg 15%, they pay Luxembourg 0% and uk 20%

MrMoonX · 23 Mar 2014 at 20:29

Ok but it's still an increase = bad

Participant · 23 Mar 2014 at 20:29

Makes sense, when the small local business that can't afford to offshore are forced to charge 20% VAT, yet Massive Global Corp Inc Plc get away with it.

Glaucus said:
This is a grid

Em3bbs · 23 Mar 2014 at 20:31

MrMoonX said:
Ok but it's still an increase = bad

When companies don't pay taxes in the UK who do you think makes up for the shortfall?

diamount · 23 Mar 2014 at 20:31

Glaucus said:
Or by 5% as they currently pay 15 tax to another country.
This is a grid and sensible move.
What's there to complain about.

So rather than a tax loop, where they pay Luxembourg 15%, they pay Luxembourg 0% and uk 20%

Them increasing prices?

Rofflay · 23 Mar 2014 at 20:31

People pay for apps? shocking

teaboy5 · 23 Mar 2014 at 20:33

MrMoonX said:
http://www.macrumors.com/2014/03/23/app-store-um-price-increase/

The latest shaft from the government came in the budget which from 1st Jan 2015 means google, apple, amazon etc. can no longer avoid VAT which means all our apps etc are gonna go up 20% next year

Thanks Gideon

How will I ever afford the extra 20p or so.

Glaucus · 23 Mar 2014 at 20:33

diamount said:
Them increasing prices?

That whole 3.5p on a 69p app. Its good for everyone, in brings digital into the same tax laws as physical goods that will help non digital. It means ul gets the money.

Judgeneo · 23 Mar 2014 at 20:35

I'm with Glaucus on this one, I think its a good thing

Duke · 23 Mar 2014 at 20:36

Sounds sensible.

Raymond Lin · 23 Mar 2014 at 20:37

Glaucus said:
That whole 3.5p on a 69p app. Its good for everyone, in brings digital into the same tax laws as physical goods that will help non digital. It means ul gets the money.

It's not going to be a 73.4p app, you know it'll be 79p though.

Glaucus · 23 Mar 2014 at 20:37

Judgeneo said:
I'm with Glaucus on this one, I think its a good thing

People complain about companies using tax loop holes. Then complain when governments close them. Of course cost wild go up, otherwise there was no point using the loop hole.

scorza · 23 Mar 2014 at 20:37

I support this too. Large scale, widespread tax avoidance schemes like this are bad. I hate VAT because it's such a regressive tax, but if you're going to have it then it should apply across the UK economy.

Glaucus · 23 Mar 2014 at 20:38

Raymond Lin said:
It's not going to be a 73.4p app, you know it'll be 79p though.

If anything it's like to stay at 69p, they're priced at certain levels for a reason. Same reason things are priced at 99p rather than at whole pounds, psychologically we think its cheaper. They can already charge what they want. So the chance of it stepping up like that is slim. It's not like other markets with competition. Each ecosystem is a monopoly as they aren't cross platform capable.

Amp34 · 23 Mar 2014 at 20:38

I though you'd be all for this! Or is it actually nothing to do with tax and everything to do with another snipe at the conservative party?

Alternatively is it the usual, tax avoidance by big companies is bad, any avoidance that is done that directly benefits you is not bad...

Sliver · 23 Mar 2014 at 20:40

Glaucus said:
Of course cost wild go up, otherwise there was no pint using the loop hole.

Agreed. When it comes to loopholes I always like a pint.

Participant · 23 Mar 2014 at 20:42

scorza said:
I hate VAT because it's such a regressive tax

I hear that a lot, but how else would you administer a tax on adding value to things? Every country has something similar, and there are lots and lots of other things that are regressive and 'unfair' in the sense of price relative to income. In fact, practically everything is. It's just because it's called a 'tax' that people get mobilised by it

.

Raymond Lin · 23 Mar 2014 at 20:45

Glaucus said:
If anything it's like to stay at 69p, they're priced at certain levels for a reason. Same reason things are priced at 99p rather than at whole pounds, psychologically we think its cheaper. They can already charge what they want. So the chance of it stepping up like that is slim. It's not like other markets with competition. Each ecosystem is a monopoly as they aren't cross platform capable.

If anything...any excuse to make any more money, people will do so.

It'll be more like the end of 69p apps, minimum 99p instead.

Glaucus · 23 Mar 2014 at 20:46

Raymond Lin said:
If anything...any excuse to make any more money, people will do so.

It'll be more like the end of 69p apps, minimum 99p instead.

They can charge what ever they want now, they don't need an excuse its a total monopoly as it is, so you have no choice anyway to shop elsewhere.