Apple implements App Store tax and pricing adjustments in multiple countries

Apple has introduced tax and pricing changes for its App Store across several international markets. These adjustments, which affect both apps and in-app purchases, are aimed at aligning pricing structures with evolving tax regulations. While some changes take immediate effect, others are slated for implementation in the coming weeks and months.

Effective today, Apple has implemented new tax and pricing rules in five countries:

• Azerbaijan: A value-added tax (VAT) of 18% has been introduced.
• Peru: The country will now impose an 18% VAT.
• Slovakia: The standard VAT rate increases from 20% to 23%, with a reduced 5% VAT rate introduced for ebooks.
• Estonia: The reduced VAT rate for news publications, magazines, and other periodicals has risen from 5% to 9%.
• Finland: Ebooks will now be subject to a higher reduced VAT rate, increasing from 10% to 14%.

Later this month, further pricing changes will be rolled out for Azerbaijan and Peru. These updates will automatically adjust pricing for apps and in-app purchases in these regions unless developers have selected these countries as their base pricing storefronts. In such cases, no pricing changes will be applied.

For developers who have not set Azerbaijan or Peru as their base storefronts, Apple will modify prices to maintain consistency with international price levels.

Apple has also announced significant changes for Japan, which will take effect on April 1. Following last year’s amendment to Japan’s tax regulations, Apple, operating through iTunes K.K. in Japan, will now function as a Specified Platform Operator. This designation requires Apple to collect and remit a 10% Japanese Consumption Tax (JCT) for paid apps and in-app purchases sold by developers based outside Japan.

The new platform tax regime will apply to all digital content, including game-related items such as virtual currencies. Developers should expect adjusted proceeds to account for this tax collection.

Apple encourages developers to review these updates and adjust their pricing strategies accordingly. More detailed information is available on Apple’s official developer portal to help app creators navigate these changes smoothly.