Apple and Google report on Value Added Tax (VAT) differently, and that impacts the Gross Revenue number we report.

The Gist

• Apple's Gross Revenue includes VAT.
• Apple's Net Revenue does not include VAT.
• Google's Gross Revenue does not include VAT.
• Google's Net Revenue does not include VAT.

Example

Let's start with the app purchaser based in Denmark, a country that requires VAT.

VAT on the Apple App Store

On the App Store, the purchaser downloads the app and pays 1.00 kr. (that's Danish Krone)

VAT is built into this price, so the Gross Revenue will be reported as 1.00 kr.

The Net Revenue deducts both VAT and Apple's fee. If VAT is 20% and Apple's fee is 15% Net Revenue will be 0.68 Kr.

VAT on Google Play

On Google Play, the purchaser downloads the app and pays 1.00 kr. (that's Danish Krone)

VAT is built into this price but the number Google reports to developers is what remains after VAT is removed, so in this case, the Gross Revenue will be reported as 0.80 kr.

The Net Revenue deducts both VAT and Google's fee. If VAT is 20% and Google's fee is 15% Net Revenue will be 0.68 Kr.