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Thread: Is VAT included in the in-app token/coin purchased in a phone applications

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    Is VAT included in the in-app token/coin purchased in a phone applications

    I am confused ! developing a mobile phone application that will require users to load their account with the app's coin by using card or bank transfer. This coin is used as gift on this platform *and the coin is also redeemable . My questions are;

    1. Do I have to add VAT *to the price of the coin and
    2. I searched and I am yet to see a platform/app where money or token/coins used as gift *are redeemable as cash deposit. is there any law anywhere against redeeming gift as cash deposit?

    I need serious help with these questions.
    Kind regards,

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    Diamond Member adrianh's Avatar
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    "The Apps Coin" - what in the world does that mean?
    “Why, sometimes I've believed as many as six impossible things before breakfast.”
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    Quote Originally Posted by adrianh View Post
    "The Apps Coin" - what in the world does that mean?
    I wrote App's coin which means the coin that is purchasable on the app. Just like coins are purchased to play games on game apps.

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    It sounds like you should think of your coin as currency, or a virtual equivalent of a gift voucher.

    Gift vouchers have a monetary value, but AFAIK the VAT is raised in the sale of the goods being purchased (that are being paid for by the gift voucher), not in the sale of the gift voucher.
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    Diamond Member adrianh's Avatar
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    As far as I am aware only an entity that is registered for VAT can charge VAT and thus have to pay said VAT over.

    What about international transactions? VAT is region specific and subject to different rules in different places - how would it be paid over?
    “Why, sometimes I've believed as many as six impossible things before breakfast.”
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    Thanks a lot for your insightful response. I'll like to know about this.

    2. I have searched and I am yet to see a platform/app where money or token/coins used as gift *are redeemable as cash deposit. is there any law anywhere against redeeming gift as cash deposit?

    Thanks alot

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    Diamond Member adrianh's Avatar
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    If you can explain to me exactly and in detail what you want to do then I can ask my brother. ( You can PM me if it is confidential. )

    My brother was the MD of an international bank and he is still on national and international financial boards.
    “Why, sometimes I've believed as many as six impossible things before breakfast.”
    ― Lewis Carroll, Alice in Wonderland

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