Running a digital store that supports 44 currencies across 175 storefronts can prove to be a challenge if you’re not a big company like Apple. Even so, meandering the labyrinth of tax laws of each country where you distribute apps can be really challenging even for Apple.
In a developer post published this week, Apple admits that from time to time it needs to adjust prices due to changes in tax regulations of foreign exchange rates. Apparently, it’s that time of the year when Apple operates App Store tax and price changes in half of dozen countries.
Several years ago, these changes happened rarely, but the world’s economy took a tumble in the last couple of years, and with the new tariffs Trump is threateningly waving left and right, we’ll probably have to get used to seeing these tax and price changes more often.
Developers in five European countries have been hit with tax and price adjustments | Image credit: PhoneArena
That said, if you’re living in the United States, you should be safe for now, as Apple only mentions five European countries in the announcement. Starting February 6, developers’ proceeds from the sale of eligible apps and in-app purchases have been modified in the following countries:
Azerbaijan: value-added tax (VAT) introduction of 18%
Peru: VAT introduction of 18%
Slovakia: Standard VAT rate increase from 20% to 23%
Slovakia: Reduced VAT rate introduction of 5% for ebooks
Estonia: Reduced VAT rate increase from 5% to 9% for news publications, magazines, and other periodicals
Finland: Reduced VAT rate increase from 10% to 14% for ebooks
Japan introduces a new 10% tax for non-domestic iOS developers
There’s one more country where the App Store will operate price adjustments due to a change in tax regulations: Japan. According to the Cupertino-based company, Apple is now designated as a “Specified Platform Operator” by the Japan tax authority, which means that all paid apps and in-app purchases sold by non-domestic developers on the App Store in the country will be subject to a new tax regime.
If you’re a non-Japanese developer, Apple will collect and remit a 10 percent Japanese consumption tax (JCT) on the transactions mentioned above, which means proceeds will need to be adjusted accordingly.
The good news is these changes will take effect on April 1, so any prepaid payment products (i.e. coins) sold prior to this date will not be subject to platform taxation.
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Cosmin, a tech journalist with a career spanning over a decade, brings a wealth of experience to PhoneArena. His expertise lies in brands like Samsung and Nokia, and he has a keen interest in innovative technologies. After a brief stint in PR, Cosmin returned to tech journalism in 2016, committed to delivering clear and objective news. When he's not writing or appearing as a guest on TV and radio shows, Cosmin enjoys playing RPGs, watching Netflix, and nurturing his passion for history and travel.
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