Apple App Store Sales Tax & VAT Guide for U.S. Developers 2025

2025-09-16

If you're a U.S. developer selling apps or subscriptions through the Apple App Store, this guide will tell you:

Which U.S. sales taxes Apple handles for you
Where Apple collects international VAT/GST
What tax obligations remain your responsibility
How to stay compliant with official requirements

Quick Answer for U.S. Developers

U.S. Sales Tax:

Apple collects and remits sales tax in all U.S. states as merchant of record
Your responsibility: Submit W-9, monitor economic nexus thresholds, potentially file $0 returns in some states

International VAT/GST:

Apple collects and remits VAT/GST in 70+ countries and regions as merchant of record
Your responsibility: Submit tax forms in App Store Connect and select correct tax categories
Key exception: Certain countries require local developers to handle VAT (typically doesn't affect U.S. developers)

Last updated: September 2025 based on official Apple documentation

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U.S. Sales Tax: What Apple Handles

Apple as Merchant of Record

Apple's Role: Apple charges customers sales tax where required and remits it to state tax authorities.
What You Receive: Your proceeds minus Apple's commission. Sales tax is separate from commission fees.

Official Source: Apple - Understanding taxes

Your U.S. Sales Tax Responsibilities

1. Submit Required Tax Forms

W-9 Form: Must be completed in App Store Connect
Tax Categories: Select appropriate categories for apps and in-app purchases
Official Guide: Apple - Provide tax information

2. Economic Nexus Compliance

Even though Apple collects the tax, your App Store sales count toward state economic nexus thresholds.

Common Thresholds:

$100,000 in sales OR 200 transactions (varies by state)
If you exceed thresholds, some states require registration and filing

What This Means:

Some states: Require registration and $0 returns (showing Apple collected the tax)
Other states: No registration required if all sales are through marketplace facilitators
Your action: Monitor your sales by state and consult state tax authorities

Official Reference: Streamlined Sales Tax - Marketplace facilitators

3. Record Keeping

Download from App Store Connect:

Transaction Tax Reports: Show sales tax collected by state
Financial Reports: For your accounting records

Reference: Apple - Transaction Tax Report fields

International VAT/GST: Where Apple Collects

Countries Where Apple Handles VAT

The official list: Apple's Exhibit B contains the complete, current list of countries where Apple collects and remits taxes.

As of September 2025, Apple collects VAT/GST in these 80+ countries and regions:

Europe: Albania, Armenia, Austria, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, Iceland, Ireland, Italy, Kosovo, Latvia, Lithuania, Luxembourg, Malta, Moldova, Netherlands, Norway, Poland, Portugal, Romania, Russia, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Ukraine, United Kingdom

Asia-Pacific: Australia, Azerbaijan, Cambodia*, China*, India**, Indonesia*, Japan***, Kazakhstan*, Korea*, Kyrgyzstan*, Laos, Malaysia, Nepal*, New Zealand, Philippines*, Singapore*, Taiwan, Tajikistan*, Thailand*, Uzbekistan*, Vietnam††

Americas: Bahamas, Barbados, Canada, Chile, Colombia, Peru, United States, Uruguay†

Middle East/Africa: Bahrain, Benin, Cameroon, Egypt, Ghana, Ivory Coast, Kenya, Nigeria, Oman, Saudi Arabia, Senegal, South Africa, Suriname, Tanzania, Türkiye, Uganda, United Arab Emirates, Zambia, Zimbabwe

Critical notes for U.S. developers:

Asterisked countries (*): Special rules apply but typically don't affect U.S. developers
Countries not listed: You may need to handle VAT yourself
Always check current list: Official Exhibit B is updated regularly

Your International VAT Responsibilities

1. Tax Information Submission

W-9 completion for U.S. entities
Accurate business information in App Store Connect
Reference: Apple - Provide tax information

2. Tax Category Selection

For Apps: Set tax category (apps)
For IAPs: Set tax category (IAPs)

Why It Matters: Different categories qualify for reduced VAT rates in certain countries (e.g., books, news content)

3. Monitor Tax Updates

Apple regularly updates VAT rates and coverage. Recent example: Finland's ebook VAT rate increased from 10% to 14%.

Stay Updated: Apple Developer News for tax announcements

When You Must Handle Taxes Yourself

1. Alternative Payment Methods

If you use alternative payment systems (where allowed), Apple doesn't collect tax.

Your Responsibility: Calculate, collect, and remit both sales tax and VAT
Reference: Apple - Alternative payment tax info

2. Local Business Presence

If you establish entities outside the U.S., local tax obligations may apply beyond Apple's collection.

3. Countries Where Apple Doesn't Collect (Local Developer Exceptions)

Based on the official Exhibit B, Apple does not collect VAT for local developers incorporated in these countries:

Non-resident developers only (Apple collects):

Cambodia
Indonesia
Kazakhstan
Korea
Kyrgyzstan
Nepal
Philippines
Singapore
Tajikistan
Thailand
Uzbekistan

Local developers must handle their own VAT (Apple doesn't collect):

India
Japan (local developers)
Vietnam (local corporate developers only)

Special Cases:

Mexico: VAT-registered developers must remit portion themselves
China: Apple collects some but not all digital taxes
Uruguay: Apple collects certain digital transaction taxes only

Impact on U.S. Developers: These exceptions typically only apply if you establish a local business entity in these countries. As a U.S. developer, Apple generally handles VAT collection for your App Store sales globally.

State-by-State Sales Tax Considerations

States Requiring Registration Despite Apple Collection

Some states require marketplace sellers to register even when facilitators collect tax:

Examples of Requirements:

Registration: Even with $0 tax due
Reporting: Show gross sales, then deduct marketplace sales
Filing frequency: Often matches regular sellers (monthly/quarterly)

Action Required: Research your specific states' marketplace facilitator laws or consult a tax professional.

States With No Additional Requirements

Other states don't require registration if all sales are through qualifying marketplace facilitators like Apple.

Key Point: Requirements vary significantly by state and change frequently.

Compliance Checklist for U.S. Developers

Initial Setup

Complete W-9 in App Store Connect
Set correct tax categories for all apps and IAPs
Review Exhibit B for current VAT collection countries
Research economic nexus thresholds for your target states
Verify any countries NOT in Exhibit B where you have significant sales

Ongoing Compliance

Monitor Apple Developer News for tax updates
Download monthly/quarterly tax reports
Track sales by state for nexus monitoring
Review state marketplace facilitator requirements annually
Consult tax professionals for complex situations

Record Keeping

Maintain Apple's tax reports and invoices
Document tax category selections and rationale
Keep records of any direct tax payments (if using alternative payments)

Frequently Asked Questions

Do I need to collect U.S. sales tax on App Store sales?

No. Apple acts as merchant of record and collects/remits all required U.S. sales tax. However, you may need to register in some states for reporting purposes if you exceed economic nexus thresholds.

Do I need to file VAT returns for international sales?

No, for App Store sales. Apple collects and remits VAT/GST in 70+ countries as merchant of record. You only handle VAT if using alternative payments or establishing local business presence.

What about economic nexus in U.S. states?

Monitor carefully. Your App Store sales count toward state thresholds. Some states require registration and $0 returns even when Apple collects. Requirements vary by state.

How do I find current tax rates and coverage?

Check these sources:

Exhibit B - the definitive list of where Apple collects VAT
App Store Connect tax reports for actual rates charged
Apple Developer News for updates

What if I use alternative payment methods?

You handle everything. Apple doesn't collect any tax when you use alternative payments. You're responsible for calculating, collecting, and remitting both U.S. sales tax and international VAT where required.