Apple has introduced updates regarding taxes and pricing for the App Store and other digital platforms across multiple regions, with some adjustments taking effect right away. More changes are anticipated to roll out in the upcoming weeks and months.
February tax and pricing updates
Starting today, Apple has implemented updates in tax and pricing across five markets:
- Azerbaijan: introduction of an 18% value-added tax (VAT)
- Peru: introduction of an 18% VAT
- Slovakia: increase of the standard VAT rate from 20% to 23%
- Slovakia: introduction of a reduced VAT rate of 5% for ebooks
- Estonia: increase of the reduced VAT rate from 5% to 9% for news publications, magazines, and similar periodicals
- Finland: increase of the reduced VAT rate from 10% to 14% for ebooks
Additional changes will be implemented later this month in Azerbaijan and Peru.
App and In-App Purchase pricing will be adjusted for the Azerbaijan and Peru storefronts unless you have selected one of those as the base for your app or In-App Purchase. These changes also take into account the VAT introductions mentioned above.
If you selected the Azerbaijan or Peru storefront as the base for your app or In-App Purchase, prices will remain the same. For other storefronts, prices will be updated to ensure consistency with your chosen base price.
Japan updates in April
In a related note, Apple has outlined the changes that will go into effect in Japan on April 1.
Following last year’s changes to Japan’s tax laws, Apple (via iTunes K.K. in Japan) is now classified as a Specified Platform Operator by the Japanese tax authority. Consequently, all paid apps and In-App Purchases (including virtual items like coins) sold by developers outside of Japan on the App Store will be subject to a platform tax framework. Apple will collect and remit a 10% Japanese consumption tax (JCT) to Japan’s National Tax Agency on these transactions at purchase time. Your earnings will be adjusted accordingly.
Developers can refer to this entry from Apple for further information.
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