Apple Notifies Developers of Tax and Pricing Changes in Some Foreign App Stores

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Apple on Wednesday began sending out emails to let developers know of changes to the price of App Store apps in several countries, owing to regional adjustments in value added tax (via 9to5Mac).

Apple told developers that since January 1 it had been collecting taxes on the sale of apps and in-app purchases in Armenia, Belarus, Turkey, Saudi Arabia, and United Arab Emirates.

The new policy means Apple is administering collection and remittance of tax to authorities at a rate of 20 percent in Armenia and Belarus; 5 percent in Saudi Arabia; 18 percent in Turkey; and 5 percent in United Arab Emirates. Meanwhile, in Switzerland, existing tax collections dropped from 8 percent to 7.7 percent.

Apple also announced price updates this week for the following countries: Czech Republic, where prices will decrease for apps and in-app purchases (excluding auto-renewable subscriptions); India, where prices will decrease for apps and in-app purchases (including auto-renewable subscriptions); and Turkey, Nigeria, Belarus, and Armenia, where prices will increase for apps and in-app purchases (excluding auto-renewable subscriptions).

As expected, App Store developer proceeds will be adjusted and calculated based on the new tax prices. In addition to the tax and price change notices, Apple reminded developers they can adjust subscription pricing at any time to preserve prices for existing customers. Using iTunes Connect, developers can also check new prices in the Pricing and Availability section of My Apps.

Tags: App Store, tax

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