Tax and Price Updates for Apps... Note

Tax and Price Updates for Apps, In-App Purchases, and Subscriptions

The App Store facilitates global sales of digital goods and services in 44 currencies across 175 storefronts. Adjustments to prices and proceeds are made periodically due to tax regulations and foreign exchange rate fluctuations. These changes aim to maintain consistent pricing across all storefronts using publicly available exchange rate data. As of August 21, several countries experienced tax modifications affecting app and In-App Purchase proceeds. Brazil implemented a 3.5% IOF tax, while Canada's digital services tax was removed. Estonia increased its VAT rate from 22% to 24%. Romania saw VAT rate hikes for general goods and a significant increase for news, magazines, books, and audiobooks. The Philippines introduced a 12% VAT for non-Philippine-based developers. Vietnam implemented new VAT and personal income tax rates for both organizations and individual developers, with specific changes to tax remittances for local businesses. Beginning September 8, app and In-App Purchase pricing will be adjusted in the Philippines and Vietnam, unless these are designated as base storefronts. These price updates will also consider the new VAT introductions and changes. Manual price management and auto-renewable subscriptions are exempt from these automated price adjustments. Developers can view and edit these upcoming price changes in App Store Connect.