Apple had in December introduced App Store tools to allow developers in different countries to manage currency exchanges and local taxes.
Exhibit B of the Paid Applications Agreement will reflect the tax based changes in commission calculation
Photo Credit: Apple
Apple has announced that it is making changes to prices for apps listed on the App Store and to in-app purchases. The Cupertino, California-based tech giant that deals with 44 currencies across 175 iOS app storefronts, has made adjustments to pricing in order to correct for fluctuating foreign exchange rates and tax policy changes in certain countries where the company operates in.
According to a blog post by Apple, on February 13, 2023, prices of apps and in-app purchases on the App Store, apart from auto-renewable subscriptions, will be increased in Colombia, Egypt, Hungary, Nigeria, Norway, South Africa, and the United Kingdom. The iPhone maker will also decrease prices in Uzbekistan in order to reflect on the decrease in value-added tax rates in the country from 15 percent to 12 percent.
In Ireland, Apple's App Store pricing and in-app purchases for electronic newspapers and periodicals will reflect a reduction in value-added tax rates from 9 percent to 0 percent. A similar tax rate reduction is seen in Luxembourg, from 17 percent to 16 percent, which will be reflected in Apple's latest pricing in the country, the company confirmed.
Meanwhile, the increase of goods and services tax in Singapore from 7 percent to 9 percent has resulted in an increase in pricing on the App Store in the country. In Zimbabwe, too, users will see an increase in pricing with the value-added tax increasing from 14.5 percent to 15 percent.
By the end of January, proceeds will be increased for local developers selling in Cambodia, Kyrgyzstan, Indonesia, Singapore, South Korea, Tajikistan, Thailand, and Uzbekistan, the company added in the blog post.
The Cupertino, California-based tech giant noted that it will estimate and remove taxes based on the tax category information users have provided before calculating the commission, with Exhibit B of the Paid Applications Agreement reflecting this change.
Apple had announced last month that it will introduce 700 new price points for developers and tools that help them set prices in different countries. The new price points rolled out as part of a storefront overhaul, which the company claimed as “the most comprehensive upgrade” made in terms of pricing since the App Store launched in 2008.
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