No, VAT is a tax on consumers, which is why I left it out of the calculation.
To recap: Apple Ireland made 400€s of profit by getting iPhones at 200€s and selling them at 600€s to Apple Italy.
The 400€s profit went virtually untaxed due to Apple having privileged corporate tax.
Thus, in conclusion, Apple paid little to no taxes on EU sales for ages.
What the EU contested wasn't that the whole thing was illegal, after all it's Irish business how much do they want to tax corporate profits (albeit as you can imagine the whole schema was to push for more trading, not corporate loopholes), but that Apple (and some other companies) got a special treatment compared to other businesses in Ireland.
Isn't sales tax (and/or GST also a tax) on consumers? GST is just in theory much simpler and cheaper to administer.
> The 400€s profit went virtually untaxed due to Apple having privileged corporate tax.
> Thus, in conclusion, Apple paid little to no taxes on EU sales for ages.
To recap: Apple Ireland made 400€s of profit by getting iPhones at 200€s and selling them at 600€s to Apple Italy.
The 400€s profit went virtually untaxed due to Apple having privileged corporate tax.
Thus, in conclusion, Apple paid little to no taxes on EU sales for ages.
What the EU contested wasn't that the whole thing was illegal, after all it's Irish business how much do they want to tax corporate profits (albeit as you can imagine the whole schema was to push for more trading, not corporate loopholes), but that Apple (and some other companies) got a special treatment compared to other businesses in Ireland.