App Store Update To Change App Pricing In Select Countries, Apple Says

Apple is rolling out a new update for its App Store that would change the pricing of iOS apps in some markets. The Cupertino giant is sending out emails to developers informing them of the changes.

9to5Mac reported Wednesday that Apple is in the process of informing developers of the changes that are coming to the App Store. The news outlet has obtained a copy of an email that the company is rolling out to developers, informing them of the price modifications that will take effect in response to the changes in VAT or valued added tax in some countries.

“On January 1, 2018, value added tax (VAT) applicable to sales of your apps and in-app purchases changed in some countries,” Apple stated in the email. The tech giant then explained that it will administer the collection of taxes and remittance of tax to the appropriate tax authorities in Armenia, Belarus, Turkey, Saudi Arabia and United Arab Emirates.

The rate of the taxes is set at 20 percent in Armenia and Belarus, 5 percent in Saudi Arabia, 18 percent in Turkey and 5 percent in UAE. Meanwhile, Apple is charging consumers a 7.7 percent fee in Switzerland, down from 8 percent, because of the changes in the VAT code of the Central European country.

Apple also disclosed that other markets will see changes in the pricing of apps and in-app purchases available to them this week. For instance, Czech Republic consumers will notice a decrease in the prices of apps and in-app purchases excluding auto-renewable subscriptions. The same changes will be implemented in India. Prices of apps and in-app purchases excluding auto-renewable subscriptions in Turkey, Nigeria, Belarus and Armenia, on the other hand, will increase.

Apple is encouraging developers to make adjustments to their subscription pricing at any time in iTunes Connect to preserve the prices for their existing clients.

“Your proceeds will be adjusted accordingly and will be calculated based on the tax exclusive price. The Pricing and Availability section of My Apps will be updated with the new prices. You can also download the updated price tier charts now,” Apple also noted in its email.

Apple Insider says implementing changes in the App Store is not new to Apple at all. The Cupertino giant occasionally makes necessary changes to the App Store pricing due to changes in foreign exchange rates, local tax codes and other considerations.