The Digital Markets Act & Tax

Why bypassing the App Store and Play Store is not that simple.

Many are hailing the European Union’s Digital Markets Act (DMA) as a game changer in terms of control and as a way of ending the Apple / Google “Tax” on digital platforms. This is because the DMA will give digital businesses the option to introduce direct billing solutions instead of relying on conventional routes offered by app stores.

On one hand, this transition symbolizes newfound opportunities in revenue control and heightened user experiences. On the other (often ignored) hand, the transition creates additional responsibilities attached to this opportunity – indirect taxes.

Put differently, many businesses are too busy focusing on the “additional 30%”, and forgetting (or ignoring) the new responsibility for calculating, collecting and remitting taxes.

This article focuses on the indirect tax (VAT) challenges companies will likely face when implementing direct billing solutions.

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