Steve Jobs Weighs in on iPad International Pricing and Taxes

220232 ipad uk

With Apple's announcement on Friday regarding availability of the iPad in nine new countries later this month, a number of potential customers expressed dismay at the apparent higher prices in those countries relative to those in the United States. Several of those customers took the time to email Apple CEO Steve Jobs with complaints on the issue, two of whom shared his identical responses with us.

Please educate yourself. UK prices must by law include VAT, which is around 18%. US prices do not include tax.

Value added tax (VAT) is similar to the sales tax that is familiar to most residents of the United States, but is applied uniformly throughout the country for a given type of item and is included in the advertised pricing. Sales tax in the United States is not included in advertised pricing, as it varies significantly by region, even down to the municipality level.

The standard VAT rate in the UK is 17.5%, meaning that the 429 base price for the 16 GB Wi-Fi iPad in the UK is actually only 365 in "pre-tax" pricing. At current exchange rates, this corresponds to approximately $540 in the United States, or an approximately $40 premium for U.K. customers. While the price difference is not insignificant, it is considerably smaller than it might appear at first glance.

Apple has long offered somewhat higher international pricing on his products than it does in the United States, even accounting for difference in taxation practices. These differences are possibly due to increased overhead for distribution and "cost of business" in other countries, as well as the need to account for foreign exchange rates that can fluctuate over time.

Meanwhile, users in Germany have discovered that their iPad prices are higher than in other European countries, even when accounting for tax differences. At least one reader also emailed Jobs about this issue and reported to fscklog that he noted a special copyright tax imposed by the government there.

Blame your government. Germany just added a new copyright levy for computers.

The report notes that iPad prices in Germany are about 15 euros higher than those in France and Italy, with the extra copyright tax being applied due to the iPad's classification as a "PC without burner".

Popular Stories

iphone 17 pro asherdipps

iPhone 17 Pro Max Rumors Allegedly Refer to 'iPhone 17 Ultra' Model

Friday March 14, 2025 7:56 am PDT by
If you've been following iPhone rumors over the last few years, you may remember reading reports that Apple flirted with the idea of introducing a super high-end "Ultra" model that would either replace its Pro Max device or sit above it in Apple's smartphone hirearchy. These reports appeared in the pre-launch iPhone 15 and iPhone 16 rumor cycles, but ultimately came to nothing. Now though, the...
ios 18 4 carplay

Apple Upgrades CarPlay in Two Ways

Wednesday March 12, 2025 6:05 am PDT by
The upcoming iOS 18.4 update for the iPhone includes a smaller but meaningful improvement for Apple's in-car iPhone mirroring system CarPlay. Specifically, CarPlay now shows a third row of icons, up from two rows previously. However, this change is only visible in vehicles with a larger center display. For example, a MacRumors Forums member noticed the change in a Toyota Tundra with a...
airpods pro 2 gradient

AirPods Pro 3 Launch Now Just Months Away: Here's What We Know

Tuesday March 11, 2025 3:26 am PDT by
Despite being released over two years ago, Apple's AirPods Pro 2 continue to dominate the wireless earbud market. However, with the AirPods Pro 3 expected to launch in 2025, anyone thinking of buying Apple's premium earbuds may be wondering if the next generation is worth holding out for. Apart from their audio and noise-canceling performance, which are generally regarded as excellent for...
apple surveyor app

Apple Launches 'Surveyor' App for Apple Maps Data Collection

Friday March 14, 2025 10:38 am PDT by
Apple today launched a new app called Surveyor, which is designed to allow users to collect data like images of street signs and roadside details to improve Apple Maps. The app is not public facing and appears to be for use with companies that Apple partners with to assign mapping tasks. Downloading the app and opening it up directs users to "Open Partner App" to choose a task. Tapping on...
iPhone 17 Air Size Feature

Ultra-Thin 'iPhone 17 Air' Rumored to Include These 12 Features

Saturday March 15, 2025 10:50 am PDT by
While the so-called "iPhone 17 Air" is not expected to launch until September, there are already plenty of rumors about the ultra-thin device. Overall, the "iPhone 17 Air" sounds like a mixed bag. While the device is expected to have an impressively thin and light design, rumors indicate it will have some compromises compared to iPhone 17 Pro models, including only a single rear camera, a...
Apple Intelligence Comes Under Fire Feature

Apple Reassures Siri Team Members Feeling Disappointed and Embarrassed by Apple Intelligence Delay

Friday March 14, 2025 11:45 am PDT by
Apple is reassuring employees on the Siri team who may be feeling demotivated by the recent Siri delays and the bad press surrounding the company's decisions, reports Bloomberg. In a Siri team meeting, Apple senior director Robby Walker acknowledged that employees might be feeling "angry, disappointed, burned out and embarrassed" following the Siri delay, but he praised the hard work of...
Sad Siri Feature

Kuo: Cook Should Personally Address Siri Apple Intelligence Failure

Thursday March 13, 2025 4:02 pm PDT by
Apple made a major misstep with the way that it handled the delay of Apple Intelligence features for Siri, Apple analyst Ming-Chi Kuo said today. Announcing the delay through a press statement was a bad decision, and Apple should instead have gone through official channels. Kuo referenced the well-known "Antennagate" PR crisis when the iPhone 4 launched in 2010, and the way that then Apple...
iOS 19 visionOS UI Elements

iOS 19 to Have Some of the 'Biggest' Design Changes in iPhone's History

Sunday March 16, 2025 10:35 am PDT by
Apple is planning some of the "biggest iOS and macOS redesigns in its history," according to Bloomberg's Mark Gurman. In his Power On newsletter today, Gurman reiterated that iOS 19 will have a visionOS-like design with more transparent interfaces:The new interfaces will adopt the design principles introduced in visionOS, the software for Apple's Vision Pro headset. That includes greater...
iOS 18

12 New Things Your iPhone Can Do in iOS 18.4

Monday March 10, 2025 9:28 am PDT by
Apple is set to release iOS 18.4 in early April, bringing further refinements to Apple Intelligence features, a neat new capability to iPhone 15 Pro devices, new emoji, and more. While not quite as packed with new features as Apple's preceding iOS 18 point releases, iOS 18.4 still introduces enhancements that aim to make your iPhone smarter and more intuitive. Below, we've listed 12 new...