Downloads from the Apple Store

I bought iWork `08 the other day, in serial key rather than cardboard box form, and when the e-mail invoice arrived a few days later I noticed one rather interesting thing. Rather than the UK's 17.5% VAT (sales tax) rate, it was taxed at the 21% operating in Ireland, home of Apple's European HQ. The other -- physical -- goods which I ordered at the same time appeared on a separate invoice and were taxed at the UK's standard rate. Checking back through some old invoices, the same was true of the copy of QuickTime Pro I bought last year.

The moral of the story is that those of you who are able to reclaim their VAT would be wise to consider taking the download option where available: in this case, you would be paying £45.45 + £9.55 rather than ~£46.80 + £8.20. Across large orders the savings could really add up.

I wonder if the same is true for downloads purchased in other EU countries, and also whether it applies to purchases from iTunes (although you'd probably have a job convincing the Taxman that that Led Zeppelin box set you just bought is a valid deduction).