Apple updates App Store prices due to VAT changes
Current average app and in-app purchases prices. source: statista
New year, new VAT (Value Added Tax), at least in couple of countries. Reacting to that, Apple is about update its App Store prices of apps and in-app purchases, starting next week.
The countries where VAT for online goods was introduced (or changed) are as follows:
- Armenia: 20%
- Belarus: 20%
- Saudi Arabia: 5%
- Switzerland: changed from 8% to 7.7%
- Turkey: 18%
- United Arab Emirates: 5%
The tax will be collected and remitted by Apple itself.
Following this, the prices of apps and in-app purchases will increase in:
And will decrease in:
- Czech Republic
- India (including auto-renewable subscriptions)
This is not the first time Apple readjust app pricing, with the last one being in 2017, when it affected the UK and some parts of Europe.
An e-mail was sent by the Apple team to the app developers, notifying them about the change. This was done so app developers have time to reconsider and prepare their new app and in-app purchases pricing. As stated by the message, devs can currently change the subscription fees for their current subscribers in iTunesConnect, and can check the new app prices in the Pricing and Availability section in MyApps (feature where developers can manage their apps).
Below you can take a look at the e-mail, as sent by Apple: