Early this morning, Apple announced to developers that some regional apps and in-app purchases will soon implement tax and price adjustments .
“When tax rates or foreign exchange rates change, prices in the App Store are sometimes updated accordingly. Due to changes in tax rates in Chile, Mexico, Saudi Arabia, and Turkey, in the next few days, apps on the App Store and in-app purchases (automatically Except for renewal subscriptions) the price will be increased. Developer’s income will be adjusted accordingly and will be calculated based on the tax-exclusive price.”
- Chile: New VAT of 19%
- Mexico: New VAT of 16%
- Saudi Arabia: VAT increased from 5% to 15%
- Turkey: Add a 7.5% digital service tax on top of the existing 18% value-added tax
Apple said that developers’ earnings in Germany, France, Italy and the United Kingdom will also be adjusted and will be calculated based on tax-exclusive prices; however , the prices on the App Store will not change .
- Germany: Value-added tax rate reduced from 19% to 16% (effective from July 2020)
- France: Add a 3% digital service tax on top of the existing 20% value-added tax
- Italy: Add 3% digital service tax on top of the existing 22% value-added tax
- United Kingdom: On top of the existing 20% value-added tax, add a 2% digital service tax
Apple pointed out that in response to related tax reductions, Apple will automatically refund German customers who have auto-renewable subscriptions on a monthly basis (effective from July 2020). These refunds will not affect the developer’s earnings.
Naijatechnews understands that the updated price list (in English ) is now available for download. After the above adjustments take effect, the “Price and Sales Range” section of “My App” will be updated immediately. Developers can change the prices of apps and in-app purchases (including auto-renewable subscriptions) in App Store Connect at any time. If the developer offers subscription items, they can choose to keep the current price for existing subscribers.
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