To be more specific, Apple and Google are assuming VAT liability for paid apps.
If an app is a paid app in the stores, there’s relatively little decision making to be done; a developer can adjust prices based on the VAT in each country in order to maintain current revenues. The transaction between a developer and an app platform is considered a business-to-business transaction and is subject to the existing VAT rules.
If an app offers in-app purchases, a developer must consider whether allowing a platform to handle the micro-transactions (thus sacrificing the 30% revenue share) outweighs the time and costs necessary to collect and store sales information (including location) and VAT payments. This can be quite a large undertaking for an indie developer or small development studio.
If an app is a paid app in the stores, there’s relatively little decision making to be done; a developer can adjust prices based on the VAT in each country in order to maintain current revenues. The transaction between a developer and an app platform is considered a business-to-business transaction and is subject to the existing VAT rules.
If an app offers in-app purchases, a developer must consider whether allowing a platform to handle the micro-transactions (thus sacrificing the 30% revenue share) outweighs the time and costs necessary to collect and store sales information (including location) and VAT payments. This can be quite a large undertaking for an indie developer or small development studio.
See: http://www.appdevelopersalliance.org/news/eu-value-added-tax...
Webinar: https://pollen.vc/#/vat-seminar/