Apple App Store Sales Tax & VAT Guide for Developers 2025

2025-09-16

If you sell apps or subscriptions through the Apple App Store, you may wonder:
Who is responsible for sales tax and VAT: Apple, or you as the developer?

The Short Answer

U.S. sales tax: Apple collects and pays sales tax for App Store sales. You don’t have to calculate or remit it yourself.
International VAT/GST: Apple also collects and pays VAT/GST in most countries. As a U.S. developer, you do not file VAT returns for App Store sales.
Your part: Submit your tax forms in App Store Connect (like a W-9 if you’re U.S.-based). Pick the right tax category for your app or in-app purchase.
Nexus rules: Even if Apple collects the tax, your App Store sales may count toward state economic nexus thresholds. Some states may require you to register and file $0 returns.
Exceptions: In a few countries, especially if you are a local developer, Apple does not handle tax for you. In those cases, you must register and file locally.

Last updated: September 2025

Quick Reference (2025)

Topic	What you need to know
U.S. sales tax	Apple collects and remits sales tax for App Store sales. You don’t file sales tax returns for those sales. (Apple – Commissions, fees, and taxes)
VAT / GST abroad	Apple collects and remits VAT/GST in most countries. As a U.S. developer, you do not need to register for or file VAT on App Store sales. (Apple – Provide tax information)
Economic nexus	Your sales through Apple may count toward state thresholds. Some states may require you to register and file $0 returns. (Marketplace facilitators)
Tax categories	You must pick a tax category for your app and for in-app purchases. This tells Apple how to apply tax. (Apple – Set a tax category) (Apple – Set a tax category (In-App Purchases))
Reports	You can download tax reports and financial reports in App Store Connect for your records. (Apple – Transaction Tax Report fields)

Apple as Merchant of Record

Apple’s commerce system operates in 44 currencies across 175 storefronts and administers tax on behalf of developers in 70+ countries/regions. You can also assign tax categories to apps and in-app purchases so Apple applies the correct tax per jurisdiction.
Source: Apple News — “Tax updates for apps, in-app purchases, and subscriptions”

What it means in practice:

Apple charges the customer, applies the legally required tax, and remits it.
You receive proceeds net of Apple’s commission; tax is not part of the commission/fees line on Apple invoices.

Commissions, fees, and taxes

U.S. Sales Tax

Apple is the merchant of record.
Apple charges the customer sales tax if required and sends it to the state.
You receive your proceeds minus Apple’s commission. Sales tax is not part of that commission.

You still need to:

Submit your W-9 form in App Store Connect.
Keep Apple’s invoices and tax reports for your records.

Economic Nexus Rules

Even though Apple collects the sales tax, your App Store sales can count toward state economic nexus thresholds (like $100,000 sales or 200 transactions).

In some states, if you cross the threshold, you must register and file returns.
Your return may show the Apple sales as gross sales, then deduct them as marketplace sales (often ending in a $0 tax due).
Other states do not require registration if all your sales are through marketplaces.

Streamlined Sales Tax Governing Board

VAT / GST Outside the U.S.

In most countries, Apple also collects and remits VAT or GST.

For a U.S. developer:

You do not need to register for or file VAT/GST returns on App Store sales.
Apple provides you with tax statements and commission invoices in App Store Connect.

Your only task is to provide accurate tax info (like your W-9) in App Store Connect.

Apple – Provide tax information

Tax Categories

When you publish an app or IAP, you must pick a tax category in App Store Connect. Apple uses this to decide how to apply tax.

If you don’t choose, Apple defaults to “software.”
Some categories qualify for reduced VAT in certain countries (like books or news).

Apple – Set a tax category (app)
Apple – Set a tax category (IAP)

Reports You Can Download

From App Store Connect: Payments and Financial Reports, you can download:

Transaction Tax Reports (showing sales/use tax and VAT/GST by country).
Commission invoices and tax statements (proof of Apple’s tax handling).

These are useful for audits and your records.

Apple – Transaction Tax Report fields

When You Handle Tax Yourself

There are two main cases:

Alternative payment methods – If you use another payment system (where allowed), Apple does not collect tax. You are responsible for calculating, collecting, and remitting.
Special invoicing rules – Some countries require invoices beyond what Apple provides. In those cases, you must meet the extra local requirements.

Apple – Alternative payment tax info

Exceptions

Apple’s Developer Program License Agreement explains that in some regions Apple does not handle all taxes. In those places, local developers must register, collect, and remit taxes themselves.

Countries where Apple does not collect tax for local developers

(Apple still collects for non-resident developers)

India
Indonesia
Vietnam
Cambodia
Kazakhstan
Nepal

Other special cases

Mexico – If you are registered for VAT, you may still need to remit part of it yourself.
China – Apple collects some digital taxes, but not all.
Uruguay – Apple collects certain taxes but not all; developers may remain responsible.
Japan – Apple (iTunes KK) acts as agent, but responsibilities differ for local vs. non-resident developers.

What this means as a U.S. developer:
You generally don’t need to worry about these exceptions unless you set up as a local entity in one of these countries. If you do, you may need to register and file VAT/GST there yourself.

FAQ

Does Apple collect sales tax for App Store sales in the U.S.?

Yes. Apple is the merchant of record. Apple collects and remits state sales tax for App Store transactions. You do not need to calculate or send sales tax on these sales yourself.

Do I need to file VAT if I’m a U.S. developer selling through Apple?

No. Apple collects and remits VAT/GST in most countries. As a U.S. developer, you do not need to register or file VAT returns for App Store sales.

What about economic nexus rules in U.S. states?

Even if Apple collects the tax, your App Store sales may count toward state economic nexus thresholds (for example, $100,000 sales or 200 transactions). Some states may require you to register and file $0 returns.