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Home›Magazine›Apple’s app price and tax changes

Apple’s app price and tax changes

By Katrina G. Dibiase
January 20, 2022
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Apple announced upcoming in-app purchases and app price and tax changes. The new changes affect the Bahrain, Ukraine, and Zimbabwe regions, and once they go into effect, the pricing and availability sections will be updated.

Apple has announced new price and tax changes for purchases and apps.

According to Apple, “when taxes or exchange rates change, we sometimes need to update prices on the App Store in certain regions and/or adjust your recipes.”

In-app purchase and in-app pricing, taxes, and changes

“In the coming days, prices for apps and in-app purchases (excluding auto-renewable subscriptions) on the App Store will increase in the following regions. Your product will be adjusted accordingly and will be calculated based on the price excluding taxes.

  • Bahrain: Increase in value added tax from 5% to 10%
  • Ukraine: new value added tax of 20%
  • Zimbabwe: new digital services tax of 5%

Prices on the App Store in the following regions will not change, but your earnings will be adjusted to reflect the following tax changes:

  • Bahamas: Reduction of value added tax from 12% to 10%
  • Oman: new value added tax of 5%
  • Tajikistan: Reduction of value added tax from 18% to 15%

Additionally, your earnings will be adjusted accordingly to reflect tax changes for the following types of content, if you have selected the appropriate tax category in App Store Connect and the changes impact your earnings:

  • Austria: Value Added Tax Rate Returned to 10% After Temporary Drop to 5% for Eligible eBooks and Audiobooks
  • Latvia: Value Added Tax Rate Reduced from 21% to 5% for Qualifying e-Books and e-Publications
  • Romania: Reduced Value Added Tax Rate from 19% to 5% for Eligible eBooks, Audiobooks and ePublications

Once these changes take effect, the Pricing & Availability section of My Apps will be updated. You can change the price of your apps and in-app purchases (including auto-renewing subscriptions) at any time in App Store Connect. If you offer subscriptions, you can choose to keep the prices for existing subscribers.”

Click on here to read the full article from Apple.

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