Apple has began informing it developers of the upcoming App Store changes in pricing due to tax change in some basic countries at the moment, developers in Chile, Mexico, Saudi Arabia, and Turkey aren’t finding this change candle hence, the prices of apps and in-app purchases being affected.
Below is the content of the countries affected new tax scheme
- Chile: New value-added tax of 19%
- Mexico: New value-added tax of 16%
- Saudi Arabia: Increase in value-added tax from 5% to 15%
- Turkey: New digital services tax of 7.5% (in addition to the existing value-added tax of 18%)
The company continued to say that developers will see their proceedings in the App Store sales adjusted accordingly, with the revenue been calculated based on the tax-exclusive pricing.
Not just that the App Store proceedings will also be adjusted in Germany, France, Italy, and the UK due to tax changes as well, though the App Store pricing will not be affected in any way.
- Germany: Reduced value-added tax rate from 19% to 16%
- France: New digital services tax of 3% (in addition to the existing value-added tax of 22%)
- Italy: New digital services tax of 3% (in addition to the existing value-added tax of 22%)
- United Kingdom: New digital services tax of 2% (in addition to the existing value-added tax of 20%)
Developers are beginning to download updated pricing charts from Apple’s developer site to prepare for the upcoming changes. Developers are also beginning to change the prices of their apps, subscriptions, aswell as in-app purchases, and can opt to preserve pricing for existing subscribers if desired.
According to Apple, the price changes will go live within the next few days.