This article will detail our how the financials flow and how the tax is handled. If you have any questions please don't hesitate to contact us at partner@breakthroughapps.io
Revenue Collection
Breakthrough collect all of the revenue generate from each user's purchases and subscription via the Apple App Store, Google Play Store and Website.
The figures received are available in the Portal, Revenue Cat & Stripe.
Revenue Sharing
As part of our partnership agreement, Breakthrough will pay you once a month for the previously received monthly revenue from all platforms(Apple, Google & Stripe), in a lump sum. The payout amount depends on your revenue share specified in your contract with Breakthrough
Tax Handling by Breakthrough
One key aspect that simplifies your financial management is that Breakthrough handles all the tax obligations associated with the transactions made on the Apple App Store, Google Play Store and Stripe. This includes remitting necessary taxes to the relevant authorities. Therefore, you do not need to worry about the sales tax or VAT from the user transactions on the App Stores.
Reporting Your Income
The income you need to report for tax purposes is the revenue share you receive from Breakthrough. This is considered your income from the partnership. This is the only taxable income in your name in the eyes of the government
Please note: If you have your own App Store listing in that case you are liable for the tax received.
Why This Matters
This model is designed to simplify your financial responsibilities, allowing you to focus more on creating and enhancing your app while we handle the complexities of transaction taxes and revenue collection. It's important to understand that the only tax you are responsible for is declaring the income (i.e., the revenue share received from Breakthrough) when filing your taxes.
Record-Keeping
Even though Breakthrough handles the bulk of tax collection and remittance, we recommend keeping detailed records of all payments received as part of your revenue share. These records will be crucial for your financial reporting and tax submissions.
Consult a Tax Professional
While we provide this framework to help you understand your basic tax obligations, consulting with a tax professional is advisable. They can offer personalized advice based on your specific financial situation and ensure that you comply with all relevant tax laws and regulations.