Question

Calculating lost revenue from refunded subscription in Apple App Store

  • 22 February 2024
  • 1 reply
  • 73 views

Badge +1

I’m trying to better understand how refunds affect revenue, and specifically how they relate to the Apple App Store fee and sales tax / VAT.

 

My current understanding: If I have a renewable subscription for $10/mo, and the user purchases from a location with 10% sales tax/VAT, then my net revenue is $10 * (1 - 0.1) * (1 - 0.15) = $7.65. that accounts for apple’s 15% fee and the 10% tax. Next, when the user requests a refund, that customer gets the full $10 back, and the full $10 comes from my net revenue, is that right? So I end up paying $2.35 to Apple for each refunded customer.

Is my understanding correct? I can’t find any documentation about how refunds affect my revenue specifically. In this case, I’m only concerned with Apple’s App Store and auto-renewable subscriptions, if that makes a difference in how it’s handled.


1 reply

Userlevel 4
Badge +8

Hi, just letting you know that the team is looking into this and we will update you with an answer.

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