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.
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
The ignorance of your post was quite awful.
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.
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...