iPhone Apps Are Not For Business Use Says Apple

In spite of a detailed, distinct section for business-oriented applications on iTunes Store, Apple has claimed that the applications sold through its App Store are explicitly meant for non-commercial and personal use only.

Apple made this clear in its response to queries from a Swedish customer J. Martin Wehlou, who asked the iPhone maker about he could save tax on apps he purchased from the iTunes app store for his business use.

However, in quite a perplexing response to Wehlou’s query, Cupertino said: “The iTunes Store sells only to customers as end-users for personal, noncommercial use”.

Apple further told Wehlou, “The specific terms of your agreement with Apple when purchasing from the iTunes Store is that the content may not be used for commercial purposes… any attempts to claim your purchases for tax reasons would be in violation of the terms of sale”.

The incident sparked because the sales receipts from iTunes didn’t have information necessary for reclaiming Value Added Tax (VAT) - a European sales tax.

Incidentally, each EU member state has its own set of rules and regulations for implementing VAT. In the UK and Sweden, iTunes apps are regarded as luxury items, and hence non-refundable taxes are applicable on them.

Our Comments

Apps are set to become a major source of revenue for Apple and discounting businesses is certainly not going to help. One reason why Apple apparently doesn't want to get businesses to use Apps too much is because it could become too complex and impose a number of unwanted restrictions & obstacles.

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