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# How VAT is Handled by Apple and Google Play

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

## ${color}[#050505](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.
---

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

## ${color}[#030202](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.