UK closes tax loophole on digital downloads, Google Play prices likely to increase
New rules see standard VAT of 20% to be paid from January 1 2015
Buried within the recent Budget, it seems that UK Chancellor, George Osborne, has announced that digital content downloads will pay tax based on the country they are sold in. In other words all content from Google Play, Amazon, iTunes and so on, will be subject to the standard UK rate of VAT at 20%.
That's a pretty substantial increase on the rate of tax paid when the content is sold through other European countries, such as Luxembourg, and could bring an end to the 99p song download and raise the price of books, apps and games. The rules are set to come into effect on January 1 2015. For the Government it means more revenues, for the rest of us it just means that something else we love will cost more money.
Source: The Guardian
Get the Android Central Newsletter
Instant access to breaking news, the hottest reviews, great deals and helpful tips.
Posted via Android Central App
Example: the dev sets his price at £1, then 20p gets added at point of sale, so the customer pays £1.20
services rather than digital goods... May not seem like a huge deal, but it feels like we're being killed by inches. Damn I hate that scumbag Osbourne! (Not cause of this, just in general.) Posted via Android Central App