Apple announces upcoming tax changes for iOS developers

Image Source: Apple

Tech giant Apple on Tuesday announced upcoming tax changes for apps, in-app purchases, and subscriptions that will take effect on May 31.

The iPhone-maker said in its announcement post that as of today, App Store developers’ proceeds from the sale of apps and in-app purchases, which also includes auto-renewable subscriptions, will be modified according to the new tax changes that you can see below. 

  • Ghana: Increase of the VAT rate from 12.5% to 15%.
  • Lithuania: Reduction of the VAT rate from 21% to 9% for eligible e‑books and audiobooks.
  • Moldova: Reduction of the VAT rate from 20% to 0% for eligible e‑books and periodicals.
  • Spain: Digital services tax of 3%.

The company noted that the changes won’t affect the prices. 

In addition, Apple also announced that it now withholds taxes for all sales in Brazil because of the new changes to tax regulations in the country. ‘’We’ll administer the collection and remittance of taxes to the appropriate tax authority on a monthly basis,’’ the company wrote. ‘’You can view the amount of tax deducted from your proceeds starting in June 2023 with your May earnings. Developers based in Brazil aren’t impacted by this change.’’

Because of the tax regulation changes around the world, Apple regularly updates iOS developers’ proceeds in certain markets. The last time it did so was in January, which impacted the App Store prices in various countries including the U.K. and South Africa

After the new changes take effect, Apple will update the Pricing and Availability section of My Apps in App Store Connect, where iOS developers can change their prices choosing from more than 900 price points

Meanwhile, in case you don’t know, Apple last week announced the finalists for 2023 Apple Design Awards. The winners will be revealed at the WWDC 2023 event that will take place next week.

Written by Sophie Blake

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