Apple updates App Store pricing and developer payouts across multiple markets following tax changes

Apple has begun rolling out adjustments to App Store pricing and developer proceeds in several countries, reflecting recent changes in local tax regulations. The updates took effect on January 29, with additional pricing changes scheduled for February in select markets.

In a notice sent to developers, Apple said the revisions affect apps and in-app purchases that use the App Store’s automated price equalization system. The company stated that publicly available exchange rate and tax data are used to keep pricing consistent across its global storefronts, which span 175 markets and support 43 currencies.

The changes are tied directly to new or revised tax policies in nine countries. These include the introduction of a 5% goods and services tax in Bhutan, a 15% value-added tax in Mauritius, and higher VAT rates in Kazakhstan (rising from 12% to 16%), Russia (from 20% to 22%), and Zimbabwe (from 15% to 15.5%).

Other markets saw tax reductions or removals, such as Finland and Lithuania, where reduced VAT rates for news, books, magazines, and audiobooks were lowered, Ghana’s removal of its COVID-19 Health Recovery Levy, and Türkiye’s digital services tax decreasing from 7.5% to 5%.

As a result, developer proceeds from eligible app and in-app purchase sales have been modified in these countries. Apple also confirmed that its Paid Applications Agreement will be updated to reflect that the company now collects and remits applicable taxes in Bhutan and Mauritius.

Further changes are planned for Mauritius beginning in mid-to-late February. For developers who have not set Mauritius as their base storefront, Apple will adjust prices in that market to account for the newly introduced VAT while maintaining price equalization across other regions. If Mauritius is selected as the base storefront, prices there will remain unchanged, with adjustments applied elsewhere instead.

Apple noted that these updates do not affect auto-renewable subscriptions, which will retain their existing prices, nor do they apply to apps and in-app purchases where developers manually manage pricing rather than relying on automated equalization.

App Store Connect has already been updated to reflect the new and upcoming pricing changes, allowing developers to review the impact in the Pricing and Availability section. Apple added that translations of the revised agreements will be made available on the Apple Developer website within the coming weeks.

Written by Maya Robertson

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Loading…

Spotify reports $11B in music industry payouts as streaming revenues and platform investment expand

AltStore introduces app focused on CSAM transparency in app stores