Feeds

Apple states tax take on UK iPod pricing

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

Gartner critical capabilities for enterprise endpoint backup

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.

5 things you didn’t know about cloud backup

Next page: Rip-off Britain

More from The Register

next story
Raspberry Pi B+: PHWOAR, get a load of those pins
More USB ports than your laptop? You'd better believe it...
So, Apple won't sell cheap kit? Prepare the iOS garden wall WRECKING BALL
It can throw the low cost race if it looks to the cloud
Apple promises to lift Curse of the Drained iPhone 5 Battery
Have you tried turning it off and...? Never mind, here's a replacement
Now that's FIRE WIRE: HP recalls 6 MILLION burn-risk laptop cables
Right in the middle of Burning Mains Man week
Apple's iWatch? They cannae do it ... they don't have the POWER
Analyst predicts fanbois will have to wait until next year
Super Cali signs a kill-switch, campaigners say it's atrocious
Remote-death button bad news for crooks, protesters – and great news for hackers?
HUGE iPAD? Maybe. HUGE ADVERTS? That's for SURE
Noo! Hand not big enough! Don't look at meee!
prev story

Whitepapers

A new approach to endpoint data protection
What is the best way to ensure comprehensive visibility, management, and control of information on both company-owned and employee-owned devices?
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.
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.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.