Apple Raising App Store Prices in Chile, Mexico, Saudi Arabia and Turkey Due to Tax Changes

Apple today began informing developers of upcoming App Store pricing changes in several countries due to tax changes, with the prices of apps and in-app purchases affected.

appstore
Prices are shifting in Chile, Mexico, Saudi Arabia, and Turkey.

  • Chile: New value-added tax of 19%
  • Mexico: New value-added tax of 16%
  • Saudi Arabia: Increase in value-added tax from 5% to 15%
  • Turkey: New digital services tax of 7.5% (in addition to the existing value-added tax of 18%)

According to Apple, developers will see their proceeds from ‌App Store‌ sales adjusted accordingly, with revenue calculated based on the tax-exclusive price.

‌App Store‌ proceeds will also be adjusted in Germany, France, Italy, and the UK due to tax changes, though ‌App Store‌ pricing will not be shifting.

  • Germany: Reduced value-added tax rate from 19% to 16%
  • France: New digital services tax of 3% (in addition to the existing value-added tax of 22%)
  • Italy: New digital services tax of 3% (in addition to the existing value-added tax of 22%)
  • United Kingdom: New digital services tax of 2% (in addition to the existing value-added tax of 20%)

Developers are able to download updated pricing charts from Apple's developer site to prepare for the upcoming changes. Developers are able to change the prices of apps, subscriptions, and in-app purchases, and can opt to preserve pricing for existing subscribers if desired. Apple says the price changes will go live "in the next few days."

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Top Rated Comments

TiggrToo Avatar
50 months ago

Apple is hungry for $$$ .
2 Trillion isn’t enough.
This has nothing to do with profiteering. They are required to collect sales tax/VAT and remit them to the appropriate governments.

The ignorance of your post was quite awful.
Score: 18 Votes (Like | Disagree)
SBlue1 Avatar
50 months ago

What is "value-added tax"? and 19% seems really high for any tax.
Its sales tax. It’s 19% in Germany. If you see the number it surely seems high but when you see what you get for your taxes it’s ok again.
Score: 7 Votes (Like | Disagree)
TheSkywalker77 Avatar
50 months ago

Apple is hungry for $$$ .
2 Trillion isn’t enough.
Ah, you didn't read the full article did you? Just commented on the title.
Score: 5 Votes (Like | Disagree)
Wrathard Avatar
50 months ago

Sales tax is not VAT. They act and are calculated differently.



No, but it's certainly toward the upper end. At the very least, middle of the road as far as VAT goes.



Yeah, most of the rest of the world outside the U.S. uses VAT. VAT percentages seem high to us here in the US, but that's only because we are accustomed to paying all the tax at the sales end. When an American pays for a good with 8% sales tax, they are in fact paying 8% tax on top of the retail price. When someone buys a product with a 25% VAT, they might only be paying half of that 25% since the tax is not all charged to the consumer; as the name implies, it's based on the added value along the product chain.

VAT has its pros and cons though. It's more complex than sales tax, especially in long product chains. It can also increase the actual cost of goods, and of course companies have to pay VAT, unlike sales tax. OTOH, it's easier to audit than sales tax if recorded properly, and in general consumers pay less tax on goods (if the VAT is roughly 16% or less, compared to 8% average U.S. sales tax)
VAT and Sales Tax while conceptually different, are the same for the end customer.

If an item is sold for $100 w/ a 16% sales tax the customer pays $116.

If an item is sold for $100 w/ a 16% VAT the customer still pays $116.

Who collects and pays govt. is irrelevant. End customer gets charged the same whether it's Sales Tax or VAT.
Score: 5 Votes (Like | Disagree)
MauiPa Avatar
50 months ago

Apple is hungry for $$$ .
2 Trillion isn’t enough.
That literally makes no sense. Countries tax services, who do you think pays those taxes? Always the consumer. Just like the infamous tariffs here in the US, despite lies to the contrary, the consumer pays those taxes.
Score: 4 Votes (Like | Disagree)
GeoStructural Avatar
50 months ago

What is "value-added tax"? and 19% seems really high for any tax.
Yep, the US enjoys pretty low tax rates. Sales Tax in Latin America and Europe is very high in comparison.

In Colombia base sales tax is also 19%, but it can go as high as 32% for luxury items. Cars can have as much as 28% VAT as well... Computers less than $500 USD (or so, depends on exchange rate) are free of some taxes.

In addition to VAT you can also pay some other taxes... The more social, the craziest tax regulations become.

When I do projects there I have to pay taxes for the elderly, the youth, pro-hospitals, etc... I also have to pay income tax even though I have not been living there for a long time. Funny thing is in Texas (where I live) there is no income tax...
Score: 4 Votes (Like | Disagree)