Home / IOS Development / Upcoming tax and price changes for apps and in-app purchases – News

Upcoming tax and price changes for apps and in-app purchases – News



When taxes or exchange rates change, we sometimes need to update prices in the App Store. Over the next few days, app prices and in-app purchases (excluding automatically renewable subscriptions) in the App Store will increase in response to tax changes in Chile, Mexico, Saudi Arabia and Turkey. Your income will be adjusted accordingly and will be calculated due to the tax exclusive price.

  • Chile: New 19% VAT
  • Mexico: New VAT of 16%
  • Saudi Arabia: Increase in VAT from 5% to 15%
  • Turkey: 7.5% new tax on digital services (in addition to existing 18% VAT)

In addition, your income will also be adjusted in Germany, France, Italy and the United Kingdom, and will be calculated due to the tax-exclusive price. However, prices on the App Store do not change.

  • Germany: Reduced VAT from 1
    9% to 16% (with effect from July 2020)
  • France: New tax on digital services of 3% (in addition to existing VAT of 20%)
  • Italy: New tax on digital services of 3% (in addition to existing VAT of 22%)
  • United Kingdom: New tax on digital services at 2% (in addition to existing VAT of 20%)

Please note that Apple automatically issues refunds on a monthly basis to customers in Germany (effective July 2020) with automatically renewable subscriptions to take into account the tax reduction. These refunds do not affect your earnings.

You can download the updated price level maps now. When these changes take effect, the Price and Availability section of My Apps will be updated. You can change the price of the apps and in-app purchases (including automatically renewable subscriptions) in the App Store Connect at any time. If you offer subscriptions, you can choose to keep prices for existing subscribers.


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