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Apple and Facebook Disagree Over Sales Tax

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Apple and Facebook Disagree Over Sales Tax

Apple and Facebook seem to be at loggerheads as with each other as they disagree over sales tax. Apple charged Facebook 30% sales tax which hasn’t been paid.

According to claims by Facebook based on the ongoing feud between Apple and Facebook. Facebook says an update to the app showing off 30% sales cut was rejected by Apple. 

Apple is said to have blocked update to a Facebook app informing users of the company’s 30% in-app purchase which is commission rate. 

Facebook also claims that they asked Apple to remove the iOS in-app purchase fee of 30% in order to direct revenue to event hosts.

Although it seems that there was a disagreement between and Apple and Facebook here as Apple refused. This disagreement between Apple and Facebook made Facebook to tell their users where the revenue was going.

Facebook made this request from Apple and he even suggested an alternative.

In a statement below, Facebook explained.

“We asked Apple to reduce its 30% App Store tax or allow us to offer Facebook Pay so we could absorb all costs for businesses struggling during COVID-19. Unfortunately, they dismissed both our requests and SMBs will only be paid 70% of their hard-earned revenue.”

A Report by Reuters says that the message was set to be included as part of a new online events feature. It is also said that Apple rejected the update based on claims that it is “irrelevant” information.

Based on their claims there’s an existing guideline that automatically blocks developers from showing irrelevant information to users.

On the other hand, Facebook says the message wasn’t directed at entering the irrelevant information folder as it was intended to improve transparency.

“Actually the new feature is currently directed at influencers and high-profile Facebook users and is described as “a new way of monetizing your live online event through a one-off access charge that’s collected when guests register to attend.”  

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