The Epic vs Apple court case, which primarily centers around antitrust issues and Apple’s App Store practices, doesn’t directly change VAT or sales tax laws, but it could indirectly influence how VAT and sales tax are handled in digital marketplaces. Here’s how:
- Marketplace Role and Tax Liability
If Apple is forced to loosen control over in-app purchases or allow alternative payment systems (as Epic wants), Apple might no longer be the deemed seller in some transactions.
This could shift VAT/sales tax collection responsibility from Apple to individual app developers.
Many jurisdictions (especially in the EU) require platforms (like Apple) to collect and remit VAT on behalf of third-party sellers. If Apple is no longer the sole gatekeeper, developers may need to register for VAT in more jurisdictions, increasing their compliance burden.
- Cross-Border Sales Complexity
Small developers using alternative payment methods might not have the systems in place to determine customer location, calculate correct VAT/sales tax, or file returns across multiple countries.
This could raise the risk of non-compliance or incorrect tax treatment, especially in countries with destination-based tax rules.
- Pricing Transparency and Tax
The case could encourage greater price transparency and fee breakdowns (including taxes), since developers may gain more control over the checkout process.
Consumers might start seeing separate VAT/sales tax lines, depending on how apps are sold and which payment processors are used.
Summary
While the Epic vs Apple case isn’t about VAT or sales tax directly, it could result in:
- Tax compliance responsibilities shifting from Apple to developers.
- Increased complexity for cross-border digital sales.
- A need for better VAT/sales tax tools for developers using alternative app payment flows.
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