Tax for App Subscription
Our CPA is very confused that Apple takes the tax out for us for our app subscription (this is what our developer told us). Does anyone have any knowledge/experience with this or a link that can help us understand and explain to her?
There is probably an agreement form that was completed at some point in submitting the app to the app store. That would be the best source to explain how the taxes are handled.
My general understanding is that google and apple collect the sales tax based on the purchaser's location and handle remitting it to the relevant agencies. So not all purchases will have taxes withheld.
I believe this is right - Apple handles sales tax. Technically I think Apple is paying you royalties to license your software to Apple’s users. But you are obviously on the hook for income tax.
This comment was deleted 2 years ago