In this article:
- How are prices set?
- Which currency are Apps billed in?
- When will I be billed for Apps?
- Why am I charged a smaller amount than the Apps price?
- How are In-App Purchases billed?
- How is tax/VAT applied outside the EU?
- How is tax/VAT applied within the EU?
- How is tax/VAT applied to App Store prices?
- How is tax/VAT applied to In-App Purchases?
How are prices set?
Prices are set by the developer of the app and converted to all currencies available in the Tictail App Store. Tictail works closely with all third-party developers to set a reasonable price for offered apps.
Currently, Euro is the billing currency used for all EU countries with the exception of Sweden, where SEK is used. For all other countries, you will be billed in USD.
Tictail strives to provide currencies best suited for your business and will therefore increase support for local currencies in the future.
To make billing and accounting easier, you will be billed for your app subscriptions on the 27th of each month – no matter when you started your subscription. All app billings are for the upcoming month, which means that apps are paid in advance. Please note that In-App Purchases are billed immediately.
Under Settings > Apps & Billing you can see exactly which apps you have added to your store and view your upcoming billing statement. Here, you can remove apps if you no longer wish to use them.
If you have been billed a strange amount like €0.16 on your account and it's not for an In-App Purchase, it is because you have not yet used the App for an entire month. For instance, the Custom Domain app costs $1 per month. So if you installed it on the 22nd, you would only pay for those 5 days that month. Thereafter you would pay the entire cost of $1 each month.
Some Apps might need an additional and immediate payment within the App itself. For instance, an App might need money directly in order to successfully buy Facebook advertising on your behalf. Of course, you are always required to approve of any optional transaction beforehand.
Once you have approved an In-App Purchase the amount will immediately be billed to your credit card – including any applicable VAT. The App will then be notified whether the transaction was successful or not and act accordingly.
For stores located outside the EU, taxes/VAT is not applicable to our App billing. It will therefore be shown as 0% of the total cost in all our receipts.
On the 1st of January 2015, EU introduced new legislation for how VAT should be applied in sales of goods which are delivered electronically as opposed to shipped physically, affecting the Tictail App Store.
Prior to the new legislation, Tictail was required to apply Swedish VAT (25%) to all sales through the Tictail App Store in the event of the shop being in the EU. Starting in 2015, we’re now required to apply the appropriate VAT rate of the EU country in which the shop is located. Therefore, our receipts will now reflect this legislative change by applying 19% VAT for German shops, 20% for French shops and 25% for Swedish ones and so on.
The Tictail App Store has always shown universal prices which means that any applicable VAT is included in the cost. This remains true today and therefore no changes to prices have been made. Only how much of it that goes to VAT.
To illustrate, let’s look at one billing period for Custom Domains for a German shop in 2014 vs. 2015.
Price : $0.8 (25% Swedish VAT)
App Store Price: $1
Cost: $0.84 (19% German VAT)
App Store Price: $1
In-App Purchases was built to provide Apps with the possibility to cover immediate costs from a third-party provider such as Facebook when buying Ads on their platform – through the Tictail App and on your behalf.
In-App Purchase prices are therefore specified excluding VAT in order to avoid situations where it would have reduced the amount sent to the App Developer. Which they in turn are expected to pay to Facebook.
To illustrate, let’s look at an In-App Purchase for Facebook Ads with a $10 budget for a German store in 2014 vs. 2015.
VAT: $2.5 (25% Swedish VAT
In-App Purchase Price: $12.5
VAT: $1.9 (19% German VAT)
In-App Purchase Price: $11.9