For some countries, the prices of applications on the App Store are about to change: for the worse, due to an adjustment that aims to follow the fluctuations of the exchange rate of international currencies and also of local taxes. As a consequence, as Apple will update the value added tax, VAT, some countries will see the price of the apps distributed through the App Store increase, so that an app that until recently had a price will soon be increased, even though it will be the same version of the app.
In fact, it will not be the developers who change the price, but Apple that will increase it by the amount necessary to continue to have the same profit margins. While for developers the music is not the same, because even the revenues will be adjusted according to the tax changes in place, so that in some cases they might even find themselves earning less than usual.
These changes affect only a few countries and are not the same for everyone. For example, due to the new tariffs for digital services, Bahrain will see an increase in value added tax from 5% to 10%, while in Ukraine a new 20% value added tax will be applied; in Zimbabwe there will be a new 5% tax on digital services.
In other countries, however, prices on the App Store remain the same, while revenues for developers change: for example, in the Bahamas there will be a decrease in value added tax from 12% to 10%, while in Oman there will be a new value added tax of 5% and in Tajikistan there will be a decrease in value added tax from 18% to 15%.
Finally, there are three other regions where there will be changes in revenues due to new local taxes, but only for e-books, e-publications and audiobooks. Specifically, in Austria there will be a return of the value-added tax rate to 10% after a temporary reduction to 5% for ebooks and audiobooks; in Latvia there will be a reduction in the value-added tax rate from 21% to 5% for e-books and e-publications; and in Romania, there will be a reduction in the value-added tax rate from 19% to 5% for e-books, audiobooks and e-publications.
Developers who distribute apps in these countries can still find more details in this page of App Store Connect. On a related note, remember that Apple recently announced support for alternative payment systems in South Korea, in response to a new local law that prohibits tech companies from imposing proprietary payment systems on developers.
In 2021, Apple paid developers $60 billion: Cupertino’s app store set new revenue records during the holiday season between Christmas and New Year’s Eve.