Apple has announced a new adjustment of applications and purchases prices in the App Store, affecting several countries due to Recent changes in tax regulations of each territory. This update will have a direct impact on the costs for users and the profitability of developers, who must examine their price strategies. We tell you all the news below.
Country affected by the increase in prices of the App Store
Price adjustment responds to changes in local taxeswhich obliges the company to recalibrate the values of the App Store to align with these New regulations. In some countries, pricing will be automatic, while developers can establish their own basic price.
A from FebruaryApple will implement price adjustments to the following markets:
- Azerbaijan: Introduction of a value added tax (VAT) of 18%.
- Peru: Application of 18% VAT on the digital purchases.
- Slovakia: Increase in general VAT from 20%to 23%, with a 5%electronic book VAT reduction.
- Estonia: An increase in reduced VAT of periodic publications from 5% to 9%.
- Finnish: An increase in reduced VAT for electronic books from 10% to 14%.
In February, Additional changes will be implemented in the Azerbaijan and Peru. If the developers have not set a basic price for their applications in these digital stores, Apple will make automatic adjustments to reflect tax changes.
In cases where the developers have selected these countries as a basis for the price of their applications, the values will remain unchanged. However, for the rest of the affected markets, Apple will adopt automatic adjustment strategies to maintain the Price uniformity.
On the other hand, from April 1, 2024, Apple will modify prices in the Japan App Store Due to the designation of KK iTunes as a platform operator specified by the Japanese tax authorities.
This change implies that everything Purchases in the App Store Made by foreign promoters will be subject to a tax on Japanese consumption (JCT) of 10%. To facilitate the process, Apple will assume the collection and delivery of the tax directly to the National Tax Agency of JapanAdjusting the income of developers accordingly.
With these modifications, users and developers must be attentive to the adjustments of applications and subscription prices in the coming months.
