Comprehensive Guide to Google Play and App Store Revenues: Taxation, Company Formation, and Invoicing (2025)

Comprehensive Guide to Google Play and App Store Revenues: Taxation, Company Formation, and Invoicing (2025)

The mobile gaming industry continues to grow both in Turkey and globally. Developers publishing free games with monetization through in-app purchases and advertisements often overlook or misunderstand the associated financial and tax obligations. This comprehensive guide details everything you need to know about tax liabilities, invoicing requirements, company formation, and payment processes for game developers earning revenue through Google Play and the App Store.

1. Is Company Formation Mandatory for Game Revenues?

In Turkey, anyone earning commercial income is legally required to establish a company. Revenue from in-app purchases and advertisements via Google Play Store and Apple App Store falls under this rule. According to the Turkish Tax Procedure Law:

• Individuals or entities generating commercial or professional income must declare these earnings.

• Earning income without forming a legal entity is considered unregistered and can lead to severe tax penalties, interest for late payments, and fines for procedural violations.

2. Which Type of Company is Suitable?

Game developers typically choose between two main types of companies in Turkey:

• Sole Proprietorship:

  • Low setup cost, registration completed within 1-2 days.

  • Lower monthly accounting fees.

  • Income tax ranges between 15%-40% depending on income brackets.

  • Suitable for single-person operations.

• Limited Company (Ltd.):

  • Higher setup costs.

  • Corporate tax at a flat rate of 25%.

  • Better for partnerships.

  • Offers more prestige and credibility.

  • More advantageous in terms of tax planning and professional accounting.

For individual developers or small teams, a sole proprietorship is often sufficient. However, if you aim for growth and attracting investments, forming a limited company is advisable.

3. Payment Processes from Google Play and App Store

Google Play Store:

• Earnings up to the end of each month are paid between the 15th and 21st of the following month.

• The minimum payout threshold is 100 TRY.

• Payments are made to the company’s bank account.

Apple App Store:

• Monthly earnings are typically paid approximately 30 days after month-end.

• The minimum payout threshold is around 150 TRY.

• Payments are only transferred to the company’s bank account.

Both platforms deduct commissions as follows:

4. Commission Rates: When Do They Change?

Both Google and Apple apply a 15% commission for annual revenues below 1 million USD. If this limit is exceeded, the commission rate increases to 30%. These rates are automatically applied and detailed in earnings reports.

5. Invoicing Obligations and Method

As a company owner in Turkey, you are required to issue an invoice for every income earned. Since Google and Apple are based in Ireland, their invoicing details are as follows:

• Google Ireland Ltd:

  • Address: Gordon House, Barrow Street, Dublin 4, Ireland

  • VAT Number: IE 6388047V

• Apple Distribution International Ltd:

  • Address: Hollyhill Industrial Estate, Hollyhill, Cork, Republic of Ireland

  • VAT Number: IE9700053D

Important invoicing requirements:

• The invoice must be issued electronically (e-Invoice or e-Archive).

• Include commission amounts and total revenue.

• No VAT is applied since these transactions are considered export of services.

• Include the statement: "Pursuant to Article 11/1-a and Temporary Article 20 of the VAT Law No. 3065, VAT exemption has been applied."

6. Taxation on Advertising Revenues (AdMob, Unity Ads, AppLovin)

Advertisement revenues are invoiced similarly to in-app purchases. Platforms like Google AdMob and Unity Ads pay directly to your company’s bank account, and each payment requires invoicing. These earnings are also VAT-exempt as they fall under service exports.

7. Types of Taxes Applicable

• Income Tax (Sole Proprietorship): Progressive rate from 15% to 40%.

• Corporate Tax (Limited Company): Flat rate of 25%.

• Provisional Tax: Paid quarterly based on estimated income.

• Withholding Tax: Applicable if you have employees or pay rent.

• Stamp Duty: Payable per tax declaration.

8. VAT Status

Since sales are made to foreign entities, these revenues are VAT-exempt under service export rules. To benefit from this exemption:

• Invoices must be issued to foreign entities.

• The provision of services abroad must be documented.

• Declare in the VAT return under the exemption section.

9. Payment Timelines

These timelines are calculated from the month-end of when the earnings were generated.

10. Company Establishment Process and Costs

• Sole Proprietorship:

  • Setup in 1-2 business days.

  • Costs approximately 10,000-15,000 TRY.

  • Apply for e-signature and e-invoice.

• Limited Company:

  • Setup in 3-5 business days.

  • Costs including notary and chamber registration: 40,000-45,000 TRY.

  • Minimum capital: 50,000 TRY.

  • Requires a corporate bank account and appointment of a certified public accountant.

11. Accounting and CPA Fees

Accounting fees vary by company type and business volume:

• Sole proprietorship: 7,500 - 10,000 TRY per month.

• Limited company: 12,500 - 15,000 TRY per month.

Professional CPA services prevent incorrect declarations and penalties.

12. Legal Risks and Penalties

Earning without company formation or issuing invoices can result in:

• Procedural fines.

• Tax loss penalties.

• Interest for late payments.

• Loss of VAT exemption rights.

These risks could significantly diminish your earnings.

13. Incentives and Supports

There are several support programs for game developers in Turkey:

• TUBITAK Grants: R&D support for software and game development projects.

• Technopark Advantages: Income tax and social security exemptions for companies in technoparks.

• KOSGEB Supports: Grants and loans for startups.

14. Specialized Financial Consultancy for Game Developers

Game developers need expert financial advisors who understand unique revenue models and international income structures. Working with a CPA specialized in the gaming sector helps you:

• Expedite your company setup.

• Optimize tax planning.

• Smoothly navigate VAT exemption processes.

• Access incentives and grants.

15. Frequently Asked Questions (FAQs)

Can I earn from Google Play and App Store without a company?
No, under Turkish tax law, earning without a registered company is illegal and subject to penalties.

Do I need to pay VAT?
No, but you must properly declare your VAT-exempt sales in tax filings.

How do I issue invoices?
Invoices must be electronic and addressed to the Ireland-based Google or Apple entities.

Are advertising revenues treated the same?
Yes, platforms like AdMob and Unity Ads follow the same taxation and invoicing rules.

What are the tax rates?
Sole proprietorship income tax: 15%-40%; Limited company corporate tax: 25%.

Which company type is more advantageous?
Sole proprietorship for short-term, limited company for long-term growth and investment readiness.

16. Conclusion and Recommendations

To legally earn revenue from mobile games, starting with the correct company structure is essential. Collaborating with a financial consultant experienced in the gaming industry ensures compliance, minimizes risks, and maximizes profitability.

For professional assistance and to initiate your process, feel free to contact us.

Contact:
info@ozmconsultancy.com

This guide provides developers with a complete roadmap from company formation to taxation, ensuring a compliant and efficient business operation in Turkey.