Changes to App Store Pricing and Taxes
Apple has announced updates to taxes and prices on its App Store and other digital platforms. Some changes are already in effect, while others will be rolled out in the coming weeks and months.
February Tax and Price Adjustments (Effective Immediately)
Several countries are experiencing immediate changes to value-added tax (VAT) rates, which directly impact app and in-app purchase prices. The following changes are currently in place:
- Azerbaijan: Introduction of an 18% VAT.
- Peru: Introduction of an 18% VAT.
- Slovakia: Increase in the standard VAT rate from 20% to 23%.
- Slovakia: Introduction of a reduced VAT rate of 5% for ebooks.
- Estonia: Increase in the reduced VAT rate from 5% to 9% for news publications, magazines, and other periodicals.
- Finland: Increase in the reduced VAT rate from 10% to 14% for ebooks.
Additional changes in Azerbaijan and Peru are scheduled for later this month. Developers should note that:
- If you have not selected Azerbaijan or Peru as the base location for your app or in-app purchases, prices will be updated to reflect the new VAT rates.
- If you have selected Azerbaijan or Peru as your base location, prices will not change in those countries. Prices in other countries will be adjusted to maintain the same value as your chosen base price.
Japan Updates in April
On April 1st, 2024, changes will be implemented in Japan due to new tax regulations. Key points include:
- Apple (through its Japanese subsidiary) is now designated as a "Specified Platform Operator" by the Japanese tax authorities.
- This means that all paid apps and in-app purchases (including items like game coins) sold by developers outside of Japan on the App Store in Japan will be subject to a platform tax.
- Apple will collect and remit a 10% Japanese Consumption Tax (JCT) on these transactions to the National Tax Agency of Japan at the time of purchase.
- Developers will see their earnings adjusted accordingly, reflecting the 10% tax deduction.
Developers can find more detailed information about these changes from Apple’s official developer resources.