Apple adjusts foreign App Store pricing to account for VAT changes

article thumbnail

AppleInsider is supported by its audience and may earn commission as an Amazon Associate and affiliate partner on qualifying purchases. These affiliate partnerships do not influence our editorial content.

Apple is in the process of sending out emails to inform developers of an App Store update that changes price of apps in six countries adjusted due to the addition of, or changes in, that country's value added tax.

According to Apple's email, a copy of which was seen by 9to5Mac, the company started to collect taxes on the sale of apps and in-app purchases from customers in Armenia, Belarus, Turkey, Saudi Arabia and United Arab Emirates on Jan. 1.

With the new policy in place, Apple is collecting and remitting taxes at a rate of 20 percent in Armenia and Belarus, 5 percent in Saudi Arabia and the United Arab Emirates, and 18 percent in Turkey. Due to a change in VAT code in Switzerland, Apple is charging customers a 7.7 percent fee, down from 8 percent.

Additionally, prices for apps and in-app purchases, excluding auto-renewable subscriptions, will decrease in the Czech Republic over the coming week. India will also see a decrease in prices over the same period, though auto-renewable subscriptions are included as part of the change. Prices are set to increase in Armenia, Belarus, Nigeria and Turkey, though auto-renewable subscription fees will remain the same.

Apple notes in its letter that developers can adjust subscription pricing at any time to preserve prices for existing customers.

Finally, Apple says App Store proceeds will be adjusted and calculated based on the new tax prices. Developers can check new prices in the Pricing and Availability section of My Apps in iTunes Connect.

Apple occasionally updates App Store pricing to account for foreign exchange rates, changes in local tax codes or other financial considerations. In May of 2017, the company increased prices in the European Union, a change that followed a similar increase to U.K. pricing that January as a result of the "Brexit" vote.