I have recently joined a tech co. selling apps through google play. I am not sure the earnings we receive through google play are being accounted for correctly and wanted to run it by someone..
So for a sale of one app the gross is £4.99 (inc VAT), we receive the ex VAT amount of £4.16 less 30% google fees. So £2.91 is received into our bank account for one transaction.
Currently 4.16 is treated as a sale gross of VAT, so we are recording a sale of 3.47 and VAT payable of 0.69. and then fees of £1.25.
But
It looks as if google play are collecting and paying the VAT? Then I wonder do I need to report sales gross £4.99 but at no VAT. or sales net at £4.16 with no VAT. because this will effect our sales figures and corporation tax.
Hope someone might have some experience/knowledge of this! Help!
Thanks