Apple is informing developers of App Store prices changes in Chile, Mexico, Turkey, and Saudi Arabia due to their respective tax changes. The new price changes will impact the prices of apps and in-app purchases.
The Cupertino tech company has told the developers in the respective countries that their App Store sales’ proceeds will be adjusted according to the revenue calculated based on the tax-exclusive price.
App Store’s New Commission Rates
Explaining the reasons for raising App Store prices on its developers’ website, Apple said:
“When taxes or foreign exchange rates change, we sometimes need to update prices on the App Store. In the next few days, prices of apps and in-app purchases (excluding auto-renewable subscriptions) on the App Store will increase in response to tax changes in Chile, Mexico, Saudi Arabia, and Turkey. Your proceeds will be adjusted accordingly and will be calculated based on the tax-exclusive price.”
- Mexico: new value-added tax of 16%
- Chile: new value-added tax of 19%
- Turkey: new digital services tax of 7.5% + current value-added tax of 18
- Saudi Arabi: increase in value-added tax from 5% to 15%
Developers were also told that their proceeds in Germany, France, Italy, and the United Kingdom will be adjusted and will be calculated according to the tax-exclusive price with no changes in the prices on the App Store.
- United Kingdom: new digital services tax of 2% + current added tax of 20%
- Germany: reduced value-added tax rate from 19% to 16%
- France: New digital services tax of 3% +22 % value-added tax
- Italy: new digital services tax of 3% + current value-added tax of 22%
In regards to Germany, the company will issue refunds on monthly basis to customers and will renew subscriptions at a lower price due to tax reduction. The updated prices are available for developers to prepare for the changes in the price of their apps, subscriptions, and more.
“You can download the updated price tier charts now. Once these changes go into effect, the Pricing and Availability section of My Apps will be updated. You can change the price of your apps and in-app purchases (including auto-renewable subscriptions) at any time in App Store Connect. If you offer subscriptions, you can choose to preserve prices for existing subscribers.”