Store report interpretation

[icewood]

Hi,

I'm new to Nokia Store and I got my first paid app in the store about a week ago. I'm having really hard time to figure out how to interpret the report numbers. For example,

Country A, Purchases 1, Estimated Revenue 2.06 €
Country B, Purchases 1, Estimated Revenue 3.82 €
Country C, Purchases 6, Estimated Revenue 23.88 € (=3,98 € per item)

My application price point is set to 7 €. How is the revenue split done? I thought it would be either 70/30 or 60/40 depending on the payment method. That would make 4,9 € or 4,2 € for me in Euros. I understand that the price it set as price point and not as exact value in every possible currency. What I don't understand is how the revenue cut for me is much less than expected. Could anyone explain what information I'm missing.

[wizard_hu_]

Most of the variation comes from VAT and the billing actual billing method (operator billing is not just slow, but costs a lot too for example).

[Andrew Nokia]

Hello,

The revenue split for both credit card and operator billing payments is 70/30. However, you'll have to factor in price point conversions and currency exchange rates. The billing matrix (found in the price point hint of the Ovi Publish tool) indicates that price point mapping to different countries. The estimate revenue is calculated by taking 70% of the price point conversion and converting it back to Euros.

Note that estimated Revenue does not take into consideration certain influencing factors such as: data latency, currency exchange rate fluctuations, bad debt, amount pending from operator, refunds or returns.

Andrew

[pippo2010]

Hello,

The revenue split for both credit card and operator billing payments is 70/30. However, you'll have to factor in price point conversions and currency exchange rates. The billing matrix (found in the price point hint of the Ovi Publish tool) indicates that price point mapping to different countries. The estimate revenue is calculated by taking 70% of the price point conversion and converting it back to Euros.
Andrew

Sorry Andrew, just a question that bothers me for some time. How it happened that the same item has different price in euro-zone countries? I thought that price is changing when the other currency is used (conversion/fluctuations and so on). Thanks

[Andrew Nokia]

No problem, Pippo. The differing price points also factor in operator billing and mobile content rates for the markets. For example, mobile operators in the Chinese markets restrict mobile content rates to a maximum of 2 Euros.

[icewood]

Thanks for the reply and information. I guess that by taking all the factors into account I can come up with those numbers.

One new question about VAT. wizard_hu_'s answer indicated that VAT is affecting the revenues too. Did I understand correctly that Nokia pays the VAT automatically? I'm registered as company to Nokia Store with valid VAT number. However, my profit is so small that I don't have to pay VAT in my country. Do I get some kind of VAT report from Nokia so that I can reclaim the VAT back from my government?

[Andrew Nokia]

Thanks for the reply and information. I guess that by taking all the factors into account I can come up with those numbers.

One new question about VAT. wizard_hu_'s answer indicated that VAT is affecting the revenues too. Did I understand correctly that Nokia pays the VAT automatically? I'm registered as company to Nokia Store with valid VAT number. However, my profit is so small that I don't have to pay VAT in my country. Do I get some kind of VAT report from Nokia so that I can reclaim the VAT back from my government?

The online reports does not factor in any VAT, sales tax, service tax, business tax, turnover tax, IVA, ISS or any similar tax levied on the purchases.

Only publishers from Finland will have the VAT deduction on their invoices. For both European (EC) and non-European (EB) publishers, their invoices will not show any VAT deduction amount. You will need to contact your local accountants and file all related tax amounts and materials to your local tax agencies, including any VAT/tax amount, sales tax, service tax, business tax, turnover tax and others.

Hope this clarifies.

Andrew

[tamhanna]

No problem, Pippo. The differing price points also factor in operator billing and mobile content rates for the markets. For example, mobile operators in the Chinese markets restrict mobile content rates to a maximum of 2 Euros.

Which is not the only part of the China problem. For one USD sold there, you get 1 to 3 US cents (!!!)

[icewood]

Thanks again for the clarification. As it happens to be, I am from Finland. Does that mean for me that Nokia has deducted the VAT from my revenue? And that I get detailed report about the deduction so that I can contact the local tax agencies for reclaim. Where is all this information written down? I haven't found it anywhere although I've been looking for it.

[wizard_hu_]

I guess it is real:

The online reports does not factor in any VAT, sales tax, service tax, business tax, turnover tax, IVA, ISS or any similar tax levied on the purchases.

Only publishers from Finland will have the VAT deduction on their invoices.

The on-line stuff does not care about your location, however when you get the money, the VAT will appear on the invoice because you are in Finland.

[Andrew Nokia]

Thanks again for the clarification. As it happens to be, I am from Finland. Does that mean for me that Nokia has deducted the VAT from my revenue? And that I get detailed report about the deduction so that I can contact the local tax agencies for reclaim. Where is all this information written down? I haven't found it anywhere although I've been looking for it.

More information about Tax reductions can be found in the terms and conditions - section 4.6. Taxes:

"Any Finnish advance tax that may be applicable to payment relating to Your Content will be deducted as required under applicable laws and regulations. Your personal advance tax rate will be applied only if You provide Your tax card issued by Finnish tax authorities for the income relating to Content payments, furnished to Nokia’s mailing address provided in Section 18.5. No applicable Finnish advance tax will be deducted if You are registered with the prepayment-register of the Finnish tax authorities and if You provide sufficient documentation as determined by Nokia on Your registration, furnished to Nokia’s mailing address provided in Section 18.5."

That said, Finnish publishers should be able to claim this back. Can you email developer.support@nokia.com and provide me with the ticket reference number so I can forward this to the appropriate person?

[icewood]

More information about Tax reductions can be found in the terms and conditions - section 4.6. Taxes:

"Any Finnish advance tax that may be applicable to payment relating to Your Content will be deducted as required under applicable laws and regulations. Your personal advance tax rate will be applied only if You provide Your tax card issued by Finnish tax authorities for the income relating to Content payments, furnished to Nokia’s mailing address provided in Section 18.5. No applicable Finnish advance tax will be deducted if You are registered with the prepayment-register of the Finnish tax authorities and if You provide sufficient documentation as determined by Nokia on Your registration, furnished to Nokia’s mailing address provided in Section 18.5."

That said, Finnish publishers should be able to claim this back. Can you email developer.support@nokia.com and provide me with the ticket reference number so I can forward this to the appropriate person?

Thanks again Andrew for you help. I mailed to the address you gave. The response mail contained ticket number #83443. Hopefully I get my issue resolved using that channel. Thanks. By the way, there is no private messages quota left on your account.