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Change in app prices in the App Store

Change in app prices in the App Store

Apple announced that from January 1, 2015, the VAT rate on the prices of applications and games in App Store will change in all European Union countries.

Apple has sent an email to iOS developers informing about upcoming changes in the way purchases are taxed in the European App Store. The flat rate of VAT, which is currently 15% for the whole of Europe, will be converted into the applicable country value.

Apple will now calculate fees at the customer’s country tax rates. In Poland, the value of VAT is 23%. So you can expect a minimal price increase in the App Store.

Apple emphasizes in its announcement that any profits from the application will be calculated after VAT is deducted from the agreed price by the developers.

The changes will come into force on January 1, 2015. Apple’s tax practices have recently been criticized by the authorities of individual European countries.

Original message content:

On January 1, 2015, value-added tax (VAT) rates for apps will change for all territories in the European Union. VAT will be based on the customer’s country of residence instead of being the same across all EU territories. Note that prices for apps on the App Store include VAT, while the developer’s proceeds are calculated after VAT is deducted.

Learn more about updated VAT rates for apps on the App Store.
If you have any questions about this change, contact us.

The App Store team

source: 9TO5Mac, iClarified