The Apple subsidiary, has operated the European stores for Apps and content so far from Luxembourg, the advantage of the lower sales taxation is abolished in 2015.
Apple closes the Luxembourg-based subsidiary iTunes S. à R. l., according to the newspaper Luxemburger wort reports. The European business Apps and digital content to guide the company in the future of Ireland, where Apple’s European headquarters is already sitting. In the context of the expansion of the business in Cork and also the iTunes will incorporated business, the sale of Online content “in more than 100 countries” from the successes of Ireland, confirmed to the group in respect of the daily newspaper.
In 2015, iTunes Luxembourg, with 24 employees, and is generated according to the newspaper, with a turnover of 3 billion euros and a profit of 111 million Euro.
Level tax advantage in the sale of digital content
The subsidiary company iTunes since 2004, based in Luxembourg. This allowed the sale of Apps and content in Europe to the comparatively low tax rate of 15 percent. With the new EU VAT regulations, this advantage disappeared by the beginning of 2015 and, Since then, applies to digital products – including Apps – the VAT rate of the country in which the buyer has his place of residence to fall.
This is in all the other EU countries is significantly above the 15 per cent (since 2015 17 per cent) in Luxembourg. The margin ranges from 18 per cent in Malta to a tax of 27 percent in Hungary.
In European countries, in the iTunes Store and App Store shown selling price in the Apps and content like music and movies always includes the sales tax. Apple does this, usually 30 percent of the net selling price as Commission and shall remit the remaining 70 percent to the developer. With the revised revenue taxation the company also has the price levels increased in the European App store, since Apps cost in Germany for at least 99 cents.
Apple’s Irish tax practice to the test
The EU Commission is currently investigating Apple’s tax practices in Ireland, through subsidiary companies, where it is handled most of the international business. The investigation is to clarify whether it is Apple’s comparatively low tax payments in Ireland by state aid. The group an additional Payment in the billions is imminent. You have paid every tax Cent, in Ireland, due, he said, was a Manager of the group’s last.