GST on apps sold on App Store

Forums › Apple iOS and devices › GST on apps sold on App Store

sub

358 posts

Ultimate Geek

#204513 5-Oct-2016 09:50

A couple of months ago I developed and released an application on the Apple App Store. This is a paid app that sells for NZ$9.99 (US$6.99, CAD$9.99 etc). It's early days, but I've had a couple of hundred sold at this stage, mostly to users in USA and UK. There is also three NZ users that have bought the app.

I'm about to do my 6 monthly GST return this month, and it occurred to me that there may be GST implications for those three NZ purchases. Has Apple charged the users GST? Has it paid IRD for that GST collected from those sales? or were the users dealing with an overseas (Australia) company, so no GST collected and none required to be paid?

It's only a small number of sales, so we're not talking a huge amount of GST, but I'd prefer to handle it correctly going forward.

Yatey

284 posts

Ultimate Geek

#1645715 5-Oct-2016 10:22

Apple are responsible for charging and remitting the GST on the three purchases to IRD. No need to worry.

Jordan, Auckland University.
“Design is so simple, that’s why it is so complicated.” - Paul Rand

antoniosk

2358 posts

Uber Geek

ID Verified

Trusted

Lifetime subscriber

#1645767 5-Oct-2016 11:09

Are you a company or was this just a private thing?

If you are a small developer and this was private stuff, then you're not registered for GST and would be a 'small trader'. You still need to declare the income, in much the same way a market gardner declares their income from selling greens in the markets at the weekend (thats the law).

If you are a company and claim gst costs, then it gets messier (ie sales in NZ attract GST whereas sales to foreign territories attract country and state specific taxes, and now ive got a headache)

________

Antoniosk

Geektastic

17942 posts

Uber Geek

Trusted

Lifetime subscriber

#1645950 5-Oct-2016 14:35

I've noticed a number of overseas software suppliers taking the line that if you give them a GST number then you're exempt from the tax being added to your subscription.

sub

358 posts

Ultimate Geek

#1645974 5-Oct-2016 15:09

antoniosk:

Are you a company or was this just a private thing?

If you are a small developer and this was private stuff, then you're not registered for GST and would be a 'small trader'. You still need to declare the income, in much the same way a market gardner declares their income from selling greens in the markets at the weekend (thats the law).

If you are a company and claim gst costs, then it gets messier (ie sales in NZ attract GST whereas sales to foreign territories attract country and state specific taxes, and now ive got a headache)

Yes, I'm a limited liability company, registered for GST. This app is just a small side project for my company, not really our main business. Yes, any income from these app sales are included in the revenue of the company. That's all clear to me - just wasn't clear on my responsibilities regarding GST for those few sales from NZ users. Based on Yatey's reply, it sounds like Apple is taking care of the GST - I'll definitely be reading about it in more detail when I get around to do my GST return over the next couple of week.