Technology

Tax and price adjustments for apps and in-app purchases: Apple

Apple issued a reminder to developers that when tax rates or foreign exchange rates change, prices in certain regions in the App Store are sometimes updated, and developers’ benefits will also be adjusted.

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Moreover, Apple said prices for apps and in-app purchases (excluding auto-renewing subscriptions) in the App Store in Cambodia, Hungary, Kazakhstan, Kyrgyzstan, Pakistan, and Uganda will increase in the coming days.

The related price increase also includes changes in the following tax rates:

Cambodia: New 10% VAT for developers outside Cambodia

Kazakhstan: New VAT of 12%

Kyrgyzstan: New 12% VAT for developers outside Kyrgyzstan

Uganda: New VAT of 18%

Furthermore, Apple points out that developer benefits will be adjusted accordingly and will be calculated based on prices excluding tax. Appendix B of the Paid App Agreement will be updated to indicate that Apple collects and remits applicable taxes in these regions.

In addition, the Indonesian App Store prices will not change, but as the value-added tax charged by Indonesia for overseas developers will increase from 10% to 11%, the relevant developers’ earnings will still be adjusted.

After the above adjustments take effect, the “Price and Sales Range” section in “My App” will be updated immediately. Developers can change the prices of apps and in-app purchases (including auto-renewing subscriptions) in App Store Connect. If the developer offers a subscription program, there is an option to keep the current price for existing subscribers.

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