Technology

Apple announces upcoming tax changes for App Store developers

Apple on Tuesday announced some tax changes coming to apps, in-app purchases, and subscriptions available in the App Store. These changes may affect proceeds from the sale of apps and in-app content in places like Ghana and Spain. Read on as we detail what will change for developers.

What’s changing for App Store developers

As noted by the company, proceeds are adjusted periodically in certain regions based on changes in tax regulations. As of May 31, proceeds from the sale of apps and in-app purchases, which includes auto-renewable subscriptions, will be adjusted to reflect tax changes in Ghana, Lithuania, Moldova, and Spain.

Here’s what will change for each country:

  • Ghana: Increase of the VAT rate from 12.5% to 15%.
  • Lithuania: Reduction of the VAT rate from 21% to 9% for eligible e‑books and audiobooks.
  • Moldova: Reduction of the VAT rate from 20% to 0% for eligible e‑books and periodicals.
  • Spain: Digital services tax of 3%.

At the same time, the company explains that it now withholds taxes for all App Store sales in Brazil due to a change in local tax regulations. According to Apple,the prices for apps and subscriptions will not change in these countries despite the tax changes.

Apple explains that it administers taxes on behalf of developers in more than 70 countries and regions, providing developers with the ability to assign tax categories to their apps and in-app purchases. “The App Store’s commerce and payments system was built to empower you to conveniently set up and sell your products and services at a global scale in 44 currencies across 175 storefronts,” said the company.

The Pricing and Availability section in the App Store Connect will be updated as soon as these changes take effect. More details can be found on the Apple Developer website.

Source
9to5mac

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