Feeds

Apple states tax take on UK iPod pricing

You pay this, we take that, George Osborne gets the other, Eurocrats get the rest

The Power of One Infographic

Apple has made it explicitly clear how much more its charging UK consumers for its kit than US-based buyers.

The UK online Apple Store now states how much of a gadget's price goes to "VAT, duty and levies". VAT is obvious - it's our sales tax, overseas readers, billed at 17.5 per cent - and duty is the amount the European Union charges for imports of certain types of product - those with integrated FM radios, for example.

Apple's definition of 'levies' remains unclear - there's no explanation on the website, so we assume it's a catch-all for fees like those payable in some countries to compensate artists for the effects of copyright infringement.

Apple iPod Nano store

The new iPod Nano on the Apple Store

Not that the UK has such a levy, last time we looked, though many other European nations do.

Apple states the 'extras' total is "an approximation. VAT, duty and levies may vary over time".

Back to the iPods. The new 8GB Nano, for example, is listed at £129, of which £25 goes to VAT, duty and levies, says Apple.

So that's £104 for the player itself, which is the equivalent of $161 at today's Sterling-Dollar exchange rate: £1 to $1.55. Apple charges $149 in the US - the equivalent of £97.

Now, Apple has to build in some flexibility to deal with fluctuating exchange rates, but the implicit rate of £1 to $1.43 in the £104 to $149 seems a tad conservative to us.

Bear in mind, too, that some but not all US buyers pay sales tax, and US prices are listed without this State-set extra. The highest is California's 8.25 per cent, though local taxes can push this higher, up to 11.5 per cent in some parts of Illinois.

Top three mobile application threats

Next page: Rip-off Britain

More from The Register

next story
NEW Raspberry Pi B+, NOW with - count them - FOUR USB ports
Composite vid socket binned as GPIO sprouts new pins
Child diagnosed as allergic to iPad
Apple's fondleslab is the tablet dermatitis sufferers won't want to take
Microsoft takes on Chromebook with low-cost Windows laptops
Redmond's chief salesman: We're taking 'hard' decisions
For Lenovo US, 8-inch Windows tablets are DEAD – long live 8-inch Windows tablets
Reports it's killing off smaller slabs are greatly exaggerated
Seventh-gen SPARC silicon will accelerate Oracle databases
Uncle Larry's mutually-optimised stack to become clearer in August
EU dons gloves, pokes Google's deals with Android mobe makers
El Reg cops a squint at investigatory letters
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.