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0 pointsSllX3y ago0 comments

There’s a reason for that: we don’t have VAT like you do.

Here’s an example: a base model iPhone 14 is $799. If I go to the Downtown San Francisco Apple Store, it is $868.12; if I go across a bridge to the Berkeley Apple Store it is $880.90; if I go from there across a different bridge to Corte Madera it is $870.91; if I go back through San Francisco down to the neighboring county to the Hillsdale Apple Store it is $875.90; and if I buy it in Cupertino, then it is $871.91. If I cross the State border with Oregon and go to an Apple Store in Tigard or Portland, then it is $799.

Which is the price Apple should be showing on the Apple Store? They tell you at checkout because what you pay at the end is calculated according to your shipping address, and it’s a line item: sales tax, but pricing is also marketing. Which price should Apple be quoting their American customers in national ad campaigns?

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Strom3y ago

European states have different VAT rates too. A company advertises 999€ and then depending on the state it can be either 832,5€ + 166,5€ VAT or 839,5€ + 159,5€ VAT or 799,2€ + 199,8€ VAT etc.

In the case of Apple they sometimes do this and other times not. So for example the iPhone 14 is 999€ in both Germany and Austria, even though they have 19% vs 20% VAT rates. However in Finland which has a 24% rate the iPhone 14 is 1039€.

SllXOP3y ago

And does Apple have one Apple Online Store and App Store for the Eurozone or do they have separate Online and App Stores for each EU member they operate in in the local languages and currencies (for the EU and Eurozone are not even perfectly aligned)?

Almost every example I gave was within one State: California, except for the two I tacked on at the end from California’s nearest northern neighbor in Oregon. All of the California examples were within the same metro area (the San Francisco Bay Area) but different counties. There is one US website, and one US App Store.

It is not the same situation, only seemingly superficially similar until further inspection.

Strom3y ago

Local municipality taxes exist in Europe too. Some cities have an extra 1% tax for example and Apple isn't exempt from that. The price still remains what they advertise for the larger region.

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0 pointsSllX3y ago0 comments

There’s a reason for that: we don’t have VAT like you do.

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Strom3y ago

SllXOP3y ago

It is not the same situation, only seemingly superficially similar until further inspection.

Strom3y ago

Local municipality taxes exist in Europe too. Some cities have an extra 1% tax for example and Apple isn't exempt from that. The price still remains what they advertise for the larger region.

j / k navigate · click thread line to collapse