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Developer
QuiteSimple
Posts: 1,452
Registered: ‎11-06-2009
My Device: Torch 9810
My Carrier: WiFi
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Revenue share decrease due to changes in tax(VAT?) ?

Recently I noticed that there is a change in tax(VAT?) payment when purchasing apps from BB App World. For example app that costs $1.99:

Before (two weeks ago):
Subtotal:  1,99USD
Tax: 0,30USD
TOTAL: 2,29USD

Now:
Subtotal:  1,73USD
Tax: 0,26USD
TOTAL: 1,99USD

 

So the tax is no more added to the price, but it is included in the app price. While this will benefit the users (paying less), I'm not sure how it will affect vendors.IMO two options so far:

 

1) Revenue share of 70% is calculated on the subtotal, i.e. we will receive 70% of $1.73 and not of $1.99

 

2) We still receive 70% of $1.99 but we need to handle VAT by ourselves, in my undestanding till now VAT issues were handled by Digital River.

 

I'm really confused  about this change :smileysad: Any thoughts or ideas? Btw my PayPal account is Europe based, not sure how the payments look like for US/Non-European users.


 



"When you become a level 3 developer, you learn to communicate over the ether. I'm told that level 5 developers are ascend into a higher level of existence beyond the physical realm." gord888 @ crackberry
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Developer
mariagracia32
Posts: 51
Registered: ‎01-24-2011
My Device: 9800
My Carrier: At&t

Re: Revenue share decrease due to changes in tax(VAT?) ?

Wow i didn't even noticed that :smileysurprised: 

i don't want to upgrade my app prices :/ that's weird has anybody seen any news about it? :smileysurprised: we want answers asap..

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Developer
QuiteSimple
Posts: 1,452
Registered: ‎11-06-2009
My Device: Torch 9810
My Carrier: WiFi

Re: Revenue share decrease due to changes in tax(VAT?) ?

I've already filled a request in BB App World Vendor support form, no response yet. Probably it is worth to contact Digital River too.

 

I really hope, that I'm not right... otherwise it will mean a 15% cut off from all European sales and given that my European sales are like 60% of all my sales... :smileysad:



"When you become a level 3 developer, you learn to communicate over the ether. I'm told that level 5 developers are ascend into a higher level of existence beyond the physical realm." gord888 @ crackberry
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Developer
QuiteSimple
Posts: 1,452
Registered: ‎11-06-2009
My Device: Torch 9810
My Carrier: WiFi

Re: Revenue share decrease due to changes in tax(VAT?) ?

Good news! I got an official responce from RIM

 

Thank you for your email.  This change does not affect the revenue share distrubuted
to App World Vendors.  You will receive 70% of the original purchase price indicated
by yourself in the Vendor Portal. 

What a relief :smileyhappy:



"When you become a level 3 developer, you learn to communicate over the ether. I'm told that level 5 developers are ascend into a higher level of existence beyond the physical realm." gord888 @ crackberry
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Developer
mariagracia32
Posts: 51
Registered: ‎01-24-2011
My Device: 9800
My Carrier: At&t

Re: Revenue share decrease due to changes in tax(VAT?) ?

Yay +1 :smileyvery-happy:

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