On our smartphones, how much tax do we pay? This is the question we asked ourselves. Here is what we found.

In 2007, Apple and Steve Jobs unveiled the iPhone, a smart and tactile phone. The general public then discovered a new generation of mobile phones: the smartphone. Should we really go back to the phenomenon that has followed until today? Not really. From year to year, the price of high-tech toys has risen to sometimes reach a thousand euros.

However, a smartphone does not cost more than 150€, to manufacture and yet on the shelves, we find them five to six times more expensive. For example, the iPhone 6S costs 188 dollars to manufacture and it is sold from 749€. The Samsung Galaxy S7 costs $230 to manufacture and retails for €699.

Mais pour calculer le prix d’un téléphone, il ne faut pas le résumer aux coûts de production. Il faut également prendre en compte les frais liés au marketing, à la R&D , aux frais de conditionnement … et aux taxes . Mais à quel niveau ? Combien l’Etat perçoit-il sur le tarif d’un smartphone ?

We asked the Spanish manufacturer BQ to enlighten us on this subject.

Eco-participation

First, there is a tax on the retail price. The consumer pays the eco-contribution. What is this ? The eco-contribution is a “cost” added to the selling price of electronic or electrical devices sold in France. It is used to offset the cost of collecting and processing end-of-life electrical and electronic waste. The sums collected are directly disbursed to the organizations carrying out these tasks. In general, the eco-tax is around 0.52 euro/kg. On a €100 smartphone, it costs €0.01.

The private copy

There is also a private copying tax. It is a system invented by the Germans in 1965, and which is implemented throughout the European Union. Like a TV royalty, the authors of the works (music, video, photo) that can be viewed on smartphones must be compensated. It amounts to around 0.5€/GB. For a 16 GB iPhone 5S, for example, the remuneration for private copying will represent 1.13% of the sale price, or 8 euros.

Eco-Packaging

In addition to the manufacture of the smartphone, the manufacturer pays a tax on the packaging. It is the private company, Eco-Emballages, approved by the State, which takes care of this service. Its mission is to ensure the management of the national system for sorting and recycling household packaging. On a €100 smartphone, it represents €0.0284.

Corepile

Manufacturers also pay a tax on the batteries (battery) of the products they sell. They donate it to Corepile, an eco-organization under State approval since 2010. The latter collects and recycles portable batteries and accumulators in France. To finance its operation, manufacturers must donate €0.25 to a €100 smartphone.

Value added tax

Then to finish, you must, of course, pay the VAT. For those who do not know its usefulness, it is an indirect tax on consumption expenditure paid by the consumer. It is present on all commercial products ranging from the simple spoon that you buy to an automobile. VAT went from 19.6% to 20% in 2015. On a €100 smartphone, still, that's €20.

What is the total tax on a €100 smartphone?

In order to show you how much tax you pay, we have chosen to do the calculations on the basis of a €100 smartphone (yes, it's easier). We have therefore decided to schematize these calculations with a cute little drawing that will (surely) help to see things more clearly.

To resume, by buying a €100 smartphone (with a 16 GB memory), the consumer will pay a total of €28.29 in taxes, i.e. more than a quarter of the selling price:

But here we are talking about a mobile at 100 €. If we take the example of the Samsung Galaxy S7, marketed at €700, the amount of taxes is maddening. We donate 198€ to the State...

Do you think the taxes are too high? Do not hesitate to leave us your opinion on the subject.