The new tax on digital services in USA reaches the App Store and developers

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The new tax on digital services in USA reaches the App Store and developers

app, developers, Digital, reaches, services, store, tax, USA

Apple has announced changes to App Store taxes in certain countries.

The App Store will undergo some changes in taxes

Apple announced new taxes on app store digital services in apps, in-app purchases and subscriptions. The changes will affect revenue from the sale of apps and in-app content in USA, Ghana, Lithuania and Moldova. The changes are part of USA’s new digital fee, which could also make Apple devices more expensive.

The App Store commerce system was designed to allow developers to sell their products and services worldwide in more than 175 stores con 44 different currency types. Apple is responsible for administering developer taxes in more than 70 regionsoffering the possibility of determining different categories of taxes.

New taxes on digital services

Apple periodically adjusts App Store revenue in certain regions based on changing taxes and regulations in each country. As of today, May 31, 2023, the revenues of applications, in-app purchases and subscriptions they will adapt to new taxes in USA, Ghana, Lithuania and Moldova.

Here are the tax changes in each country:

  • USA: 3% Digital Services Tax.
  • Ghana: Increase in the VAT rate from 12.5% ​​to 15%.
  • Lithuania: Reduction of the VAT rate from 21% to 9% for electronic books and audio books.
  • Moldova: Reduction of the VAT rate from 20% to 0% for e-books and audio books.

The company with the bitten apple logo explained that it will soon update the information available on price and availability in App Store Connect, as soon as the changes take effect.

We recently discovered that indie developer revenue has grown 71% in the App Store over the past few years in a study by the company itself.

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